SDYLETRACS Monthly Pay 2xLeveraged S&P Dividend ETN
SDYL Fund Description
SDYL provides monthly 2x exposure to a dividend-weighted index of equities from the S&P Composite 1500 Index. Eligible companies have increased dividends every year for at least 25 years.
SDYL Factset Analytics Insight
SDYL provides 2x exposure to the S&P High Yield Dividend Aristocrats Index, reset monthly. Unlike most ETNs, SDYL pays a monthly coupon linked to twice the dividend payments of the index components. Like all levered funds, SDYL will tend to underperform its stated multiple in a volatile market when held for longer than its monthly leverage reset period. This longer reset period means that SDYL will follow its underlying index more closely over long time periods than a daily-reset product, but the note’s effective leverage may vary from the stated 2x during times of high volatility. Unlevered exposure to the same index is available through SSgA’s SDY. SDYL can be tough to trade fairly at the retail level. Spreads are reasonable, but low volume suggests a shallow order book. Be sure to use limit orders. Liquidity is better at the institutional level. Structured as an ETN, SDYL carries the credit risk of its issuer, UBS. SDYL has few assets, so there’s a high risk that the issuer will call the notes or cease creations before maturity.
SDYL CHARTS AND PERFORMANCE
SDYL Portfolio Data
SDYL Index Data
SDYL Fund Structure
SDYL Tax Exposures
SDYL Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SDYL. SDYL is rated a 5 out of 5.