SPLXETRACS Monthly Reset 2x Leveraged S&P 500 Total Return ETN
SPLX Fund Description
The ETRACS Monthly Reset 2xLeveraged S&P 500 Total Return ETN provides 2x leveraged exposure to the total return of the S&P 500, with monthly resets.
SPLX Factset Analytics Insight
This note is being redeemed. The last day of trading will be June 25, 2018. Like most leveraged funds, SPLX is intended as a tactical tool for short-term trading, not long-term buy-and-hold investing. Its long-term performance will vary significantly from the headline ratio of 2 times the S&P 500's return, due to compounding and path dependency issues. That said, SPLX attempts to mitigate these issues by resetting its leverage factor monthly, rather than daily. The tradeoff is that investors won't get exactly 2x leverage when buying between reset dates—the leverage factor will fluctuate inversely to the underlying index. Like most geared funds, SPLX doesn't come cheap—it charges a base fee and a financing fee of a flat rate plus 3-month LIBOR (simulating the interest you'd pay on a margin account). Liquidity—all important in a tactical tool—is workable, but far more liquid choices exist for geared S&P 500 exposure.
SPLX CHARTS AND PERFORMANCE
SPLX Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SPLX. SPLX is rated a 5 out of 5.