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ETRACS 2x Leveraged US Dividend Factor TR ETN (SCDL)



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Upturn Advisory Summary
08/14/2025: SCDL (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit 0.07% | Avg. Invested days 47 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | ETF Returns Performance ![]() |
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Key Highlights
Volume (30-day avg) - | Beta 1.54 | 52 Weeks Range 29.83 - 44.90 | Updated Date 06/29/2025 |
52 Weeks Range 29.83 - 44.90 | Updated Date 06/29/2025 |
Upturn AI SWOT
ETRACS 2x Leveraged US Dividend Factor TR ETN
ETF Overview
Overview
The ETRACS 2x Leveraged US Dividend Factor TR ETN (DIVL) is an exchange-traded note that offers 2x leveraged exposure to the performance of the Solactive US Dividend Factor TR Index. It is designed for investors seeking enhanced returns based on a dividend-focused strategy.
Reputation and Reliability
UBS is a reputable global financial services company with a history of offering various investment products.
Management Expertise
UBS has experience in managing and structuring ETNs, though the index methodology is the key driver of performance.
Investment Objective
Goal
To provide investors with 2x leveraged exposure to the Solactive US Dividend Factor TR Index.
Investment Approach and Strategy
Strategy: The ETN seeks to deliver twice the total return of the Solactive US Dividend Factor TR Index, before fees and taxes.
Composition The index comprises US-listed companies selected based on dividend yield and other factor considerations.
Market Position
Market Share: Data not readily available to precisely define market share in the leveraged dividend ETF category.
Total Net Assets (AUM): 13668746
Competitors
Key Competitors
- SDIV
- DVYL
- HDLV
Competitive Landscape
The leveraged ETF market is highly competitive. DIVL's primary advantage is its 2x leverage, potentially providing higher returns but also greater risk compared to unleveraged competitors. Its disadvantage is its ETN structure, which introduces credit risk associated with the issuer, and its smaller AUM compared to larger, more established dividend ETFs.
Financial Performance
Historical Performance: Historical performance data is highly variable due to the leveraged nature of the product and market conditions.
Benchmark Comparison: The ETF aims to deliver twice the return of its benchmark index, but tracking error and fees can impact this relationship.
Expense Ratio: 0.9
Liquidity
Average Trading Volume
The ETF's average trading volume is relatively low, potentially impacting execution costs.
Bid-Ask Spread
The bid-ask spread can be wider compared to more liquid ETFs, which can increase the cost of trading.
Market Dynamics
Market Environment Factors
Economic conditions, interest rates, and dividend policies of companies within the underlying index can affect DIVL's performance.
Growth Trajectory
Growth is tied to the performance of the Solactive US Dividend Factor TR Index. Changes in sector allocation, dividend policies, or index construction impact its value.
Moat and Competitive Advantages
Competitive Edge
DIVL's competitive edge lies primarily in its 2x leveraged exposure to a dividend factor strategy. This provides an opportunity for amplified returns when the underlying dividend stocks perform well. However, this leverage comes with increased risk. Also, as an ETN, DIVL carries issuer credit risk. This means an investor may not receive all returns due to the issuer's financial instability or bankruptcy.
Risk Analysis
Volatility
DIVL exhibits high volatility due to its 2x leverage, amplifying both gains and losses.
Market Risk
The ETF is subject to market risk associated with equity investments and the specific stocks included in the Solactive US Dividend Factor TR Index.
Investor Profile
Ideal Investor Profile
DIVL is suited for sophisticated investors with a high-risk tolerance and a short-term investment horizon who understand the risks associated with leveraged products.
Market Risk
DIVL is better suited for active traders or those seeking short-term tactical positions rather than long-term passive investors.
Summary
DIVL is a 2x leveraged ETN designed to track the Solactive US Dividend Factor TR Index, offering potentially higher returns with significantly increased risk. The ETN structure introduces credit risk. Its leveraged nature makes it suitable for short-term tactical trades by experienced investors with a high risk tolerance. Investors should carefully consider the impact of compounding and the potential for significant losses.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Bloomberg
- ETF.com
- Issuer's official website
Disclaimers:
The data and analysis provided are for informational purposes only and do not constitute investment advice. Past performance is not indicative of future results. Investing in leveraged ETFs carries significant risk.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ETRACS 2x Leveraged US Dividend Factor TR ETN
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
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