MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETNs (BERZ)

Overview

The MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETNs (BERZ) provides -3x leveraged exposure to the daily performance of the Solactive FANG & Innovation Index, which tracks 15 leading technology and growth companies.

Reputation and Reliability

REX Shares is an experienced issuer of leveraged and inverse ETFs and ETNs.

Management Expertise

REX Shares has a dedicated team focused on developing and managing specialized exchange-traded products.

Goal

To seek leveraged inverse returns linked to the daily performance of the Solactive FANG & Innovation Index.

Investment Approach and Strategy

Strategy: The ETN employs a -3x leverage strategy, meaning it aims to deliver three times the inverse of the daily performance of the underlying index.

Composition The ETN's performance is linked to the Solactive FANG & Innovation Index via debt obligations, not direct asset holdings.

Market Share: Limited due to the niche nature of leveraged inverse products; specific data unavailable.

Total Net Assets (AUM): 35000000

Key Competitors

• SPXS
• SQQQ
• TZA
• FAZ

Competitive Landscape

The leveraged/inverse ETF market is competitive. BERZ faces competition from broader market inverse ETFs and other sector-specific leveraged/inverse products. BERZ offers focused exposure to FANG+ Innovation stocks, which can be advantageous or disadvantageous depending on market trends. It's disadvantages includes high leverage, that can greatly impact market share due to volatility.

Historical Performance: Highly volatile and dependent on the daily performance of the Solactive FANG & Innovation Index; performance will vary significantly and is not suitable for long-term investing.

Benchmark Comparison: Benchmark is the inverse of the Solactive FANG & Innovation Index, multiplied by -3; tracking may deviate due to fees and compounding effects.

Expense Ratio: 0.95

Average Trading Volume

Average trading volume fluctuates depending on market conditions and investor interest, and it may be lower than broader market ETFs.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs due to the specialized nature and leverage involved.

Market Environment Factors

Technology sector performance, interest rates, inflation, and overall market sentiment significantly impact BERZ.

Growth Trajectory

Growth depends on the demand for leveraged/inverse products and the performance of the underlying FANG & Innovation stocks.

Competitive Edge

BERZ's primary advantage lies in providing a highly leveraged inverse exposure specifically to the FANG & Innovation sector. This offers investors a targeted tool for expressing bearish views or hedging against potential declines in these high-growth technology stocks. The -3x leverage amplifies both gains and losses, making it attractive to sophisticated traders seeking short-term opportunities. However, the specialized nature limits its appeal to a smaller investor base. REX Shares expertise in managing leveraged ETNs provides some assurance of operational efficiency.

Volatility

Extremely high due to the -3x leverage; unsuitable for risk-averse investors.

Market Risk

Significant risk associated with the performance of FANG & Innovation stocks; sector-specific downturns can lead to substantial losses.

Ideal Investor Profile

Sophisticated traders and institutional investors with a high-risk tolerance and a deep understanding of leveraged products and the FANG & Innovation sector.

Market Risk

Best suited for active traders seeking short-term, tactical opportunities; not suitable for long-term investors or passive index followers.

The MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETNs (BERZ) offers -3x leveraged inverse exposure to the Solactive FANG & Innovation Index. This ETN is designed for sophisticated, high-risk tolerance traders who seek short-term profit from declines in FANG & Innovation stocks. The high leverage makes it a volatile investment unsuitable for long-term holdings or risk-averse investors. Investors should carefully consider the risks associated with leveraged products and understand the underlying index before investing. As it aims at short-term investments, the ETF should only be considered as a short-term investment.

Data Sources:

• REX Shares Website
• Solactive Website
• ETF.com
• YCharts

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in leveraged ETFs involves significant risks, including the potential loss of principal.