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

Frequently Asked Questions About OILD

What does OILD invest in?

OILD is an exchange-traded note that aims to deliver three times the inverse of the daily performance of an index composed of U.S. oil and gas companies. This geared product focuses on a concentrated selection of firms engaged in integrated exploration and production, upstream energy, and downstream/midstream operations, explicitly excluding Master Limited Partnerships (MLPs). The underlying index selects its top 25 constituents based on market capitalization, then applies a weighting methodology using their average daily trading value over one-month and six-month periods. Sector-wise, the index allocates 30% to oil and gas exploration and production, 50% to upstream, and 20% to downstream and midstream segments. Due to its leveraged design, OILD is exclusively suited for short-term trading strategies; long-term investors may experience returns that significantly deviate from the inverse index performance because of daily compounding. Furthermore, its ETN structure means investors are subject to the credit risk of the issuing institution.

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 $26.5M 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 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.