MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN

Frequently Asked Questions About OILD

What does OILD invest in?

OILD makes a big and bearish one-day bet against a concentrated portfolio of US companies in the oil and gas exploration and production industry. The fund provides 300% daily inverse exposure to the price movements of the index. The index has a slightly broader scope of the industry as it covers three segments: (i) integrated oil and gas exploration and production, (ii) upstream energy, and (iii) downstream and midstream energy. The index does not include MLPs. It selects the top 25 stocks by market-cap and weights the resulting portfolio by minimum average daily value traded over 1-month and 6-months. The following weights are assigned per bucket: 30% for oil and gas exploration and production, 50% for upstream, and 20% for downstream and midstream. As a geared product, OILD is only designed as a short-term trading tool. Long-term returns could materially differ from those of the index due to daily compounding. Additionally, since the fund uses an ETN structure, investors assume the credit risk of the issuer.

What is the expense ratio of OILD?

MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN (OILD) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.

Is OILD a good long-term hold?

OILD 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 OILD's daily reset work?

OILD 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 OILD?

MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN (OILD) manages $41.0M 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 OILD actively managed or an index fund?

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