MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN

Frequently Asked Questions About BERZ

What does BERZ invest in?

BERZ aims to deliver a daily leveraged inverse return, specifically -3 times the performance of an index comprising FANG and other qualifying technology firms. This underlying index consistently includes eight foundational companies: Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, NVIDIA, and Tesla. Additionally, seven other companies are chosen following a specific selection process. To be considered for inclusion, a company must trade on a U.S. exchange, belong to the technology sector, and possess a market capitalization of at least $10 billion. The selection methodology begins by ranking eligible securities based on their market capitalization. The 30 largest are then further assessed by their average daily trading value over the past year. From this group, the top seven are chosen to complete the index alongside the eight core holdings, and all 15 constituents are equally weighted. The index undergoes monthly rebalancing and quarterly reconstitution. Given its nature as a daily resetting, -3x inverse leveraged product, BERZ is unsuitable for long-term investment strategies. Its returns are designed to reflect the inverse index performance over a single day, and it should not be anticipated to deliver that leveraged return over periods exceeding one day.

What is the expense ratio of BERZ?

MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.

Is BERZ a good long-term hold?

BERZ is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does BERZ's daily reset work?

BERZ rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is BERZ?

MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ) manages $7.2M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is BERZ actively managed or an index fund?

BERZ's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.