MicroSectors Gold Miners 3X Leveraged ETN

Frequently Asked Questions About GDXU

What does GDXU invest in?

GDXU is a note that provides 3x daily leveraged exposure. As such, it is not a buy-and-hold product, and is best designed for short-term tactical trading purposes only. Returns can vary significantly from 3x exposure to its underlying index if held for longer than a day. GDXU`s underlying index, the S-Network MicroSectors Gold Miners Index, is comprised of two established ETFs, namely: VanEck Gold Miners ETF (GDX) and VanEck Junior Gold Miners ETF (GDXJ), which primarily invest in the global gold mining industry. Both ETFs select and weight its constituents by market cap. Knowledge of the benefits and risks is paramount before investing in this product.

What is the expense ratio of GDXU?

MicroSectors Gold Miners 3X Leveraged ETN (GDXU) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.

Is GDXU a good long-term hold?

GDXU 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 GDXU's daily reset work?

GDXU 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 GDXU?

MicroSectors Gold Miners 3X Leveraged ETN (GDXU) manages $1.27B 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 GDXU actively managed or an index fund?

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