MicroSectors Solactive FANG Innovation 3X Leveraged ETNs (BULZ)

Overview

The MicroSectors Solactive FANG Innovation 3X Leveraged ETNs (BULZ) provide 3x leveraged exposure to a modified market-cap weighted index of FANG stocks and other innovation companies. It offers investors a magnified daily return based on the Solactive FANG Innovation Index. It focuses primarily on companies involved in technology and consumer discretionary sectors.

Reputation and Reliability

REX Shares is the issuer. They are known for their leveraged and inverse ETFs, specializing in complex investment strategies.

Management Expertise

REX Shares focuses on niche investment products, showcasing expertise in creating leveraged instruments and tailored indices.

Goal

To seek a return based on three times the daily performance of the Solactive FANG Innovation Index, before fees and expenses.

Investment Approach and Strategy

Strategy: The ETN tracks the Solactive FANG Innovation Index, employing a 3x leveraged strategy to amplify daily returns.

Composition The ETN's assets are comprised of exchange traded notes that provide the leveraged exposure to the underlying index, rather than direct holdings of the underlying stocks. The index holds a modified market-cap weighted portfolio of FANG and innovation-focused companies.

Market Share: BULZ holds a small market share within the leveraged technology ETN space.

Total Net Assets (AUM): 79830000

Key Competitors

• ProShares UltraPro QQQ (TQQQ)
• Direxion Daily Technology Bull 3X Shares (TECL)
• ProShares UltraPro Technology (UBOT)

Competitive Landscape

The leveraged technology ETF market is dominated by ProShares and Direxion. BULZ offers a slightly different focus on FANG and innovation companies, but it competes with broader technology-focused leveraged ETFs. BULZ's advantage lies in its specific sector focus. The disadvantage is its relatively smaller AUM and lower liquidity compared to competitors.

Historical Performance: Historical performance varies greatly based on the underlying index's performance. Due to leverage, returns can be significantly higher or lower than the index's returns, with increased volatility.

Benchmark Comparison: The ETN aims to deliver three times the daily return of the Solactive FANG Innovation Index. Deviations can occur due to the compounding effect of daily leverage, especially over longer periods.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume of BULZ is moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing trading costs.

Market Environment Factors

The performance of BULZ is highly dependent on the performance of the technology and consumer discretionary sectors, interest rates, and overall market sentiment towards growth stocks.

Growth Trajectory

Growth trends will mirror innovation and FANG stocks performance. Changes to strategy and holdings will be related to modifications to Solactive FANG Innovation Index composition.

Competitive Edge

BULZ's competitive advantage lies in its 3x leveraged exposure to the Solactive FANG Innovation Index. This provides investors with a targeted way to amplify returns from these key innovation-driven companies. However, leveraged ETNs are inherently risky. The issuer, REX Shares, brings expertise in structured products. This allows investors focused on this particular segment of the market to gain high beta exposure.

Volatility

BULZ exhibits high volatility due to its 3x leverage, making it significantly more volatile than non-leveraged ETFs and the underlying index.

Market Risk

The ETN is subject to market risk associated with technology and consumer discretionary stocks, as well as risks associated with leveraged products including the effect of compounding.

Ideal Investor Profile

The ideal investor is risk-tolerant, has a short-term investment horizon, and understands the complexities and risks associated with leveraged ETNs. Sophisticated traders actively managing their portfolios are most suitable.

Market Risk

BULZ is suitable for active traders with a short-term horizon. It is not appropriate for long-term investors due to the effects of compounding and potential for significant losses.

MicroSectors Solactive FANG Innovation 3X Leveraged ETNs (BULZ) offers 3x leveraged exposure to FANG and innovation companies. It is a high-risk, high-reward instrument suited for active traders with a short-term focus. The fund's performance is highly dependent on the underlying Solactive FANG Innovation Index. Investors should carefully consider the risks associated with leveraged ETNs, including volatility and the effects of compounding. It's not suitable for long-term 'buy and hold' strategies.

Data Sources:

• REX Shares Website
• Solactive Index Website
• ETF.com
• Bloomberg
• SEC Filings

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Leveraged ETNs are inherently risky and can result in significant losses.