MicroSectors Energy 3X Inverse Leveraged ETNs

Frequently Asked Questions About WTID

What does WTID invest in?

This MicroSectors ETN (WTID) is structured to offer an investment return that is three times the inverse, or opposite, of the daily performance of the Bloomberg WTI Crude Oil Subindex ERSM. This underlying index, in turn, tracks the gains and losses derived from a strategy involving continuously rolling long positions in West Texas Intermediate (WTI) crude oil futures contracts, all of which are traded on prominent U.S. exchanges.

What is the expense ratio of WTID?

MicroSectors Energy 3X Inverse Leveraged ETNs (WTID) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.

Is WTID a good long-term hold?

WTID 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 with 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 WTID's daily reset work?

WTID 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 WTID?

MicroSectors Energy 3X Inverse Leveraged ETNs (WTID) manages $6.2M 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 WTID actively managed or an index fund?

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