MRRLETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN Series B
MRRL Fund Description
MRRL provides 2x levered exposure to a cap-weighted index of US and non-US REITS that derive at least 50% of their revenues from mortgage-related activity.
MRRL Factset Analytics Insight
MRRL—an ETN—aims to provide 200% of the monthly returns of a market-cap-weighted index of global mortgage REITs. The note launched in 2015 as a Series B companion to the popular MORL, providing more capacity for identical exposure. The note, which is merely a promise to pay the index’s leveraged return—as opposed to holding the actual mortgage REITs in the index—provides its headline leverage only over one calendar month. The monthly reset means investors holding it for longer than a month may fall victim to the effects of compounding, which could cause returns to drift from the product’s stated 2x returns. The basket of mortgage REITs MRRL tracks pays a juicy yield, something that’s amplified by the 2x leverage factor. The risks are many, however: The embedded leverage in mortgage REITs is exacerbated by the fund’s 200% exposure. Moreover, as an ETN, MRRL has the counterparty risk of UBS.
MRRL CHARTS AND PERFORMANCE
MRRL Portfolio Data
MRRL Index Data
MRRL Fund Structure
MRRL Tax Exposures
MRRL Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of MRRL. MRRL is rated a N/A out of 5.