- What does IWDL invest in?
- IWDL is an Exchange Traded Note (ETN) designed to provide investors with double the leveraged exposure to the value segment within the US large-cap equity market. Its performance is tied to the total return variant of the Russell 1000 Value index, which is composed of firms characterized by lower price-to-book ratios and more modest growth projections. This instrument recalibrates its leverage quarterly. Importantly, as a leveraged product, IWDL is not suited for long-term holding; its intended leveraged returns are typically consistent only over a single day. Furthermore, given its structure as an ETN, investors also bear the credit risk associated with its issuer, UBS.
- What is the expense ratio of IWDL?
- ETRACS 2x Leveraged US Value Factor TR ETN (IWDL) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.
- Is IWDL a good long-term hold?
- IWDL 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 IWDL's daily reset work?
- IWDL 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 IWDL?
- ETRACS 2x Leveraged US Value Factor TR ETN (IWDL) manages $6.5M 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 IWDL actively managed or an index fund?
- IWDL's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.
