UGBPVelocityShares Daily 4x Long GBP vs USD ETN
UGBP Fund Description
The VelocityShares Daily 4x Long GBP vs USD ETN designed to provide 4x leveraged exposure, reset daily, to changes in spot exchange rate between the British pound and the US dollar plus the overnight interest rate changes in the two currencies.
UGBP Factset Analytics Insight
UGBP is a short-term trading vehicle providing 4x leveraged exposure to the GBP/USD cross that is rebalanced daily. The note’s returns may differ significantly from the performance of the British pound against the dollar for any holding period longer than one day—a result of the effects of path dependency and compounding. Also, keep in mind that the note’s fixing indicative value is calculated just once a day, approximately 30 minutes before the opening trading session on NYSE Arca. Unexpected events or actions can occur outside of market trading hours. These events may cause rapid and dramatic depreciation in the value of UGBP, which you may not be able to sell. Because of the 4x leverage provided by this product, a decline of 25% or more in the British pound vs the US dollar will result in 100% loss in UGBP. As an ETN, the note is backed by the credit of Citigroup Global Markets Holdings rather than physical currency. Sales of UGBP shares are taxed at ordinary income rates, regardless of holding period. UGBP’s expense ratio is high, but the accumulated expense over a short holding period should be negligible.
UGBP CHARTS AND PERFORMANCE
UGBP Portfolio Data
UGBP Index Data
UGBP Fund Structure
UGBP Tax Exposures
UGBP Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of UGBP. UGBP is rated a N/A out of 5.