MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD)

Overview

The MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD) provide -3x leveraged exposure to the daily performance of the Solactive Gold Miners Index. This ETN is designed for sophisticated investors seeking short-term amplified inverse returns from gold mining companies.

Reputation and Reliability

REX Shares is the issuer. They are known for creating complex and leveraged/inverse products. Their reliability is tied to their ability to manage the daily resets inherent in leveraged products.

Management Expertise

REX Shares specializes in complex ETFs and ETNs, focusing on leveraged and inverse strategies. Their expertise lies in structuring and managing these products.

Goal

To seek daily investment results, before fees and expenses, that correspond to three times (3x) the inverse (opposite) of the daily performance of the Solactive Gold Miners Index.

Investment Approach and Strategy

Strategy: The ETN employs a leveraged strategy, aiming for -3x the daily percentage change of the Solactive Gold Miners Index.

Composition The ETN does not hold physical assets. It uses financial derivatives to achieve its leveraged inverse exposure to the Solactive Gold Miners Index.

Market Share: GDXD holds a small market share within the leveraged/inverse gold mining ETN segment.

Total Net Assets (AUM): 32674000

Key Competitors

• DUST
• JDST
• DRIP

Competitive Landscape

The leveraged/inverse gold mining ETN space is competitive. GDXD offers a specific leveraged inverse exposure. A key disadvantage is the risk of leveraged products and the potential for value erosion over longer holding periods, especially in volatile markets.

Historical Performance: Historical performance is highly volatile and depends on the daily movements of the Solactive Gold Miners Index. Due to the leverage and daily reset, long-term performance can significantly deviate from -3x the index's cumulative return.

Benchmark Comparison: The ETN's performance should be compared to -3x the daily performance of the Solactive Gold Miners Index. Tracking error can occur due to fees, expenses, and daily rebalancing.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume of GDXD can vary, but it is generally moderate, which could affect order execution for larger trades.

Bid-Ask Spread

The bid-ask spread can fluctuate based on market conditions and trading volume, potentially impacting the cost of entering and exiting positions.

Market Environment Factors

GDXD is affected by gold prices, mining company performance, interest rates, and overall market sentiment. Economic data releases and geopolitical events also play a significant role.

Growth Trajectory

GDXD's growth trajectory is closely tied to investor demand for leveraged inverse exposure to gold miners. It is unlikely to experience sustained growth due to the nature of leveraged inverse products.

Competitive Edge

GDXD's advantage is its -3x leverage. It offers high reward and high risk. It provides an avenue for sophisticated investors to express a short-term bearish view on gold miners with magnified results. The daily reset mechanism helps in managing overnight risk, although it also leads to potential compounding losses over longer periods.

Volatility

GDXD is highly volatile due to its leveraged nature and the volatility inherent in gold mining stocks.

Market Risk

Market risk is high, as GDXD is susceptible to rapid and substantial losses if the Solactive Gold Miners Index moves against its intended inverse exposure. The leveraged structure amplifies these losses.

Ideal Investor Profile

GDXD is suitable for sophisticated, active traders with a high-risk tolerance who seek short-term, leveraged inverse exposure to gold miners. Not suitable for long-term investors.

Market Risk

GDXD is best suited for active traders seeking short-term gains, not long-term investors or passive index followers.

The MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD) provides -3x leveraged inverse exposure to the daily performance of the Solactive Gold Miners Index. GDXD is very risky. It is designed for sophisticated short-term traders with high-risk tolerance and should not be held for long periods due to the compounding effect and potential for significant losses. Investors should understand the risks involved before investing in this product.

Data Sources:

• REX Shares Website
• ETF.com
• Bloomberg
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investing in leveraged ETNs involves significant risks, including the potential loss of principal.