What does leveraged daily exposure mean for MicroSectors FANG+ Index -3X Inverse Leveraged ETN?

MicroSectors FANG+ Index -3X Inverse Leveraged ETN aims to deliver 3 times the daily return of FANG (short/inverse). The leverage resets each trading day, so multi-day returns can differ materially from 3X the underlying's cumulative return.

What is volatility decay and how does it affect MicroSectors FANG+ Index -3X Inverse Leveraged ETN?

Volatility decay (also called compounding drag) occurs because MicroSectors FANG+ Index -3X Inverse Leveraged ETN rebalances daily. In choppy, sideways markets the cumulative return can significantly trail 3X 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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MicroSectors FANG+ Index -3X Inverse Leveraged ETN (FNGD) Price

Q: What is the ISIN of MicroSectors FANG+ Index -3X Inverse Leveraged ETN?

The ISIN of MicroSectors FANG+ Index -3X Inverse Leveraged ETN is US06368M2035.

MicroSectors FANG+ Index -3X Inverse Leveraged ETN Price

— EUR

TER0.95 %

AUM106.05 M USD

IndexNYSE FANG+ Index

CurrencyUSD

Funds Launch1/22/2018

MicroSectors FANG+ Index -3X Inverse Leveraged ETN Price

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Underlying

FANG

FANG3X Short Daily

FANG

MicroSectors FANG+ Index -3X Inverse Leveraged ETN provides 3X inversedaily exposure to FANG.

Leverage & Compounding Risk

This ETF rebalances daily to achieve its 3X target. Over periods longer than one day, compounding can cause returns to deviate significantly from 3X the underlying's return — especially in volatile, sideways markets (volatility decay). This product is designed for short-term trading, not buy-and-hold investing.