MicroSectors Debuts 3x Geared Travel ETNs

June 22, 2022

The MicroSectors family of ETNs added another pair of triple inverse and leveraged products to its lineup today. The issuer’s products offer inverse and leveraged exposure to concentrated index portfolios targeting key sectors, themes or even individual ETFs.  

The MicroSectors Travel 3X Leveraged ETN (FLYU) and the MicroSectors Travel -3X Inverse Leveraged ETN (FLYD) are both tied to the daily return of the MerQube MicroSectors U.S. Travel Index, which holds 36 components weighted by liquidity. 

FLYU and FLYD both come with an expense ratio of 0.95% and list on the NYSE Arca.  

The ETNs give investors the opportunity to take high conviction positions around the travel industry depending on their view of the likely direction of the space. Travel has been an area that many expected to boom in the wake of the lifting of coronavirus-related restrictions based on pent-up demand, but that coming boom is much less certain given rising inflation at the global level and fears of a coming recession.  

At launch, Walt Disney Company, Uber Technologies Inc., Airbnb Inc., Booking Holdings Inc. and Carnival Corporation were the five largest holdings in the index, representing a combined weight of nearly 44%.  

 

(Use our stock finder tool to find an ETF’s allocation to a certain stock.)

 

The MicroSectors family includes 14 other products, with total assets under management of $3.5 billion.  

 

Contact Heather Bell at [email protected] 

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