On Tuesday, Tradr ETFs hit the ground running by launching an expansive series of new leveraged ETF products.
Traditionally, most leveraged ETF products reset on a daily basis. These products have often been used by day traders to seek short-term returns. However, Tradr’s eight new ETFs instead reset their targets on a calendar week or calendar month.
“Since its inception in 2006, the leveraged ETF space has grown to over $100 billion in assets under management. However, only daily reset products have been made available, which effectively has shut out investors who are looking for magnified returns for any period longer than a day,” noted Matt Markiewicz, head of product and capital markets at Tradr ETFs.
“Our non-daily ETFs represent a long overdue tool to address the shortcomings of daily performance resets, especially for any fiduciary who needs to be concerned about suitability when selecting products for their clients, “he explained.”
Weekly and Monthly Options
Six of Tradr’s new ETFs aim to provide leveraged weekly or monthly performance to that of their reference ETFs. The Tradr 2X Long SPY Weekly ETF (SPYB ) and Tradr 2X Long SPY Monthly ETF (SPYM) focus on the results of the SPDR S&P 500 ETF Trust (SPY ).
Meanwhile, the Tradr 2X Long Triple Q Weekly ETF (QQQW) and Tradr 2X Long Triple Q Monthly ETF (MQQQ ) seek leveraged performance to the Invesco QQQ Trust Series I (QQQ ). For semiconductor exposure, the Tradr 2X Long SOXX Weekly ETF (SOXW) and the Tradr 2X Long SOXX Monthly ETF (SOXM) aim for 200% of the results of the iShares Semiconductor ETF (SOXX ).
Single-Stock Exposure
Lastly, Trader added two funds that seek amplified weekly exposure to single stocks within the Magnificent Seven. These funds are the Tradr 1.75X Long NVDA Weekly ETF (NVDW ) and the Tradr 1.5X Long TSLA Weekly ETF (TSLW ).
By opting for longer reset periods, Tradr’s new funds open up new opportunities for leveraged reset strategies. These funds can be beneficial for strategies chasing longer trends, and face somewhat less exposure to daily stock volatility.
“One of the challenges of buying leveraged ETFs is the longer you hold them, the greater the risk you and your client incur. These new ETFs can better support investors with more intermediate time horizons, but risks still remain,“ added Todd Rosenbluth, head of research at VettaFi.
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