MAX Auto Industry 3X Leveraged ETN

Frequently Asked Questions About CARU

What does CARU invest in?

The index is a net total return index that tracks the stock prices of U.S.-listed companies that have operations relating to the automobile industry, including automobile manufacturing, parts and retail, and new and used car dealers.

What is the expense ratio of CARU?

MAX Auto Industry 3X Leveraged ETN (CARU) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.

Is CARU a good long-term hold?

CARU 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 CARU's daily reset work?

CARU 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 CARU?

MAX Auto Industry 3X Leveraged ETN (CARU) manages $5.1M 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 CARU actively managed or an index fund?

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