MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN

Frequently Asked Questions About BERZ

What does BERZ invest in?

BERZ provides 300% daily inverse exposure to an index of FANG and technology companies that meet certain requirements. The fund will consistently comprise eight core components (Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, NVIDIA, and Tesla) and include seven companies determined through a selection methodology. Eligible securities must be listed on a US exchange, classified in the technology sector, and have a market cap of at least 10 billion USD. Selection will begin with ranking the securities by market cap. The 30 largest companies are selected and then sorted by 12-month average daily value traded. The top seven stocks will complete the index along with the eight core components and are then equally weighted. The index is rebalanced monthly and reconstituted quarterly. As a leveraged inverse product with -3x factor that resets daily, BERZ is not a buy-and-hold investment and should not be expected to provide index leverage return greater than a one day period.

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 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 $6.7M 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.