SMHBETRACS 2xMonthly Pay Leveraged U.S. Small Cap High Dividend ETN Series B
SMHB Fund Description
SMHB tracks twice the monthly returns of a dividends-selected, liquidity-weighted index of US small-cap equities.
SMHB Factset Analytics Insight
SMHB is a leveraged take on dividend-paying US small-caps. The ETN’s underlying index selects from the 2000 smallest companies on the list of the 3000 largest US stocks. From this pool, 100 small-caps with the highest estimated 12-month forward dividend yield are selected. Holdings are weighted by 3-month average daily dollar volume, with a single security cap of 5%. SMHB applies a 2x leverage factor to this index, reset monthly. This infrequent reset period makes the note suitable for longer holdings periods than a daily-reset product, though investors will still feel the effects of compounding over time. The note pays a monthly coupon equal to twice the yield of the underlying index. SMHB is a replacement (“Series B”) for sibling SMHD, which was still trading but closed for creations as of the note’s launch. Among several minor differences, SMHB includes a feature where the note’s leverage will reset if the underlying index falls by 20% from the previous month, including intraday.
SMHB Summary Data
SMHB Portfolio Data
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SMHB Tax Exposures
SMHB Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SMHB. SMHB is rated a N/A out of 5.