ETRACS Monthly Pay 2x Leveraged US Small Cap High Dividend ETN Series B (SMHB)
ARCA ARCA Primary Summary
SMHB Chart
3 Leveraged ETFs That Aggressive Investors Should Be Buying Now
If you're interested in private equity, there might be a cheaper solution through these three leveraged ETFs to buy. What does that have to do with private equity?
ETRACS Monthly Pay 2x Leveraged US Small Cap High Dividend ETN Series B (SMHB) FAQ
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Has ETRACS Monthly Pay 2x Leveraged US Small Cap High Dividend ETN Series B ever had a stock split?
ETRACS Monthly Pay 2x Leveraged US Small Cap High Dividend ETN Series B Profile
| ARCA Exchange | US Country |
Overview
This entity is structured to track the performance of a specific index comprising 100 relatively small capitalization, dividend-yielding securities from the U.S. listed equity universe. The distinctive feature of this entity is its employment of a two times leverage mechanism on the index it tracks. This means that it aims to double the returns of the index for its investors, for both gains and losses, making it a high-risk, high-reward investment vehicle. The leverage is compounded monthly, affecting the entity's performance significantly based on the index's movements. Such financial instruments are designed for investors seeking aggressive investment strategies, capitalizing on the movements of small-cap dividend-yielding stocks while understanding the increased risk due to leverage.
Products and Services
- Two Times Leveraged Index Tracking
This product is the core offering, designed to provide investors with twice the returns of a carefully selected index of 100 small-cap, dividend-yielding U.S. equities. The leverage applied means that for any movement in the index, up or down, the corresponding movement in this product's value will be doubled. This is achieved through financial derivatives and borrowing, aiming to magnify investment outcomes. However, it's important for potential investors to be aware of the heightened risk of loss, as adverse movements are also doubled.
- Dividend Yielding Equity Exposure
Alongside leveraging, the product specifically focuses on small-cap stocks that pay dividends. This approach seeks not only to provide the capital appreciation associated with leveraged index tracking but also to capture the potential income generated through dividends. Dividend-yielding stocks are often considered a sign of corporate health and stability, which can be an attractive characteristic for investors. However, the overall performance remains heavily influenced by the leveraged mechanism's effect on the index's movements.
