What does leveraged daily exposure mean for Fubon APL TR Daily Return Leveraged 2X Index ETN?

Fubon APL TR Daily Return Leveraged 2X Index ETN aims to deliver 2 times the daily return of APL (long). The leverage resets each trading day, so multi-day returns can differ materially from 2X the underlying's cumulative return.

What is volatility decay and how does it affect Fubon APL TR Daily Return Leveraged 2X Index ETN?

Volatility decay (also called compounding drag) occurs because Fubon APL TR Daily Return Leveraged 2X Index ETN rebalances daily. In choppy, sideways markets the cumulative return can significantly trail 2X the underlying's period return — even if the underlying ends flat. The effect intensifies with higher leverage factors and longer holding periods.

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Fubon APL TR Daily Return Leveraged 2X Index ETN (02001L.TW) Price

Q: What is the ISIN of Fubon APL TR Daily Return Leveraged 2X Index ETN?

The ISIN of Fubon APL TR Daily Return Leveraged 2X Index ETN is TW00002001L4.

Fubon APL TR Daily Return Leveraged 2X Index ETN Price

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Funds Launch4/16/2020

Fubon APL TR Daily Return Leveraged 2X Index ETN Price

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Underlying

APL

APL2X Long Daily

APL

Fubon APL TR Daily Return Leveraged 2X Index ETN provides 2X daily exposure to APL.

Leverage & Compounding Risk

This ETF rebalances daily to achieve its 2X target. Over periods longer than one day, compounding can cause returns to deviate significantly from 2X the underlying's return — especially in volatile, sideways markets (volatility decay). This product is designed for short-term trading, not buy-and-hold investing.