YCLProShares Ultra Yen
YCL Fund Description
YCL provides a 2x multiple to the daily performance of the yen spot price against the US dollar as measured by Reuters.
YCL Factset Analytics Insight
YCL offers an aggressive and bullish 1-day bet on the Japanese yen/US dollar cross rate, designed to gain big when the yen appreciates against the greenback. The fund rebalances its 2x exposure on a daily basis, so over the long term, returns in YCL could diverge significantly from expected returns due to compounding effects. Unlike most geared funds, YCL gains its leveraged exposure through futures and forward contracts, as opposed to swap agreements. Therefore, the fund is structured as a commodities pool and it distributes K-1 forms. Furthermore, YCL’s taxation on sale of shares is unique, with 60% of gains taxed at the long-term rate, and 40% of gains taxed as ordinary income, regardless of holding period. Since the implementation of Abenomics, the yen has weakened significantly against the US dollar, and long-yen ETFs have been out of favor. In fact, YCL is at risk for closure, due to its low assets. Trading the fund can be costly in retail quantities—volume is thin and average spreads are wide.
YCL Charts And Performance
YCL Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of YCL. YCL is rated a 5 out of 5.