HDLB Profile
The ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B is structured to provide investors with leveraged exposure to a specific segment of the U.S. equity market. The ETN aims to replicate twice the monthly performance of an index that includes 40 high dividend-yielding and lower volatility stocks. These stocks are selected from the largest 1,000 U.S. listed companies by market capitalization, focusing on those with stable dividends and relatively low price volatility.
The index underlying the ETN is carefully constructed to reflect the performance of these 40 securities, which are chosen based on their dividend yields and low volatility characteristics. The index is designed to deliver the benefits of high dividend income while mitigating the risks associated with market fluctuations. The leveraged nature of the ETN means that it seeks to provide twice the return of the index on a monthly basis, amplifying both potential gains and losses.
Investors in the ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B can expect monthly payments, which are intended to approximate the leveraged returns of the index constituent securities. The ETN's leverage factor is set at 2x, meaning it aims to achieve twice the monthly return of the index, subject to daily rebalancing and compounding effects.
Managed by ETRACS, the ETN offers an advanced investment option for those seeking enhanced yield opportunities and targeted exposure to a specific segment of the equity market. The fund's structure allows investors to benefit from both high dividend yields and a strategy designed to reduce volatility, while the leveraged exposure aims to enhance potential returns. The product is suited for investors with a higher risk tolerance seeking to capitalize on the dual benefits of dividends and market stability.
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