• (1:00) - What Is Volatility Drag and What Impact Does It Have On Leveraged ETFs?

• (5:50) - How Long Do Investors Hold These Leverage ETF Products?

• (8:30) - Why Did It Take So Long For These Products To Make It To Market?

• (11:20) - Tradr ETFs Calander Reset Leveraged ETF Suite

• (17:45) - What Type of Investor Are These Trading Tools Meant For?

• (23:25) - What Other Products Can Investors Expect From Tradr ETFs In The Future?

• (27:20) - What Impact Do Leveraged ETFs Have On Market Volatility?

• (31:45) - Episode Roundup: Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Matt Markiewicz, Head of Product & Capital Markets at Tradr ETFs, about Calendar Reset Leveraged ETFs. These ETFs are designed for slightly longer-term investors, unlike traditional leveraged ETFs, which reset daily.

Since their introduction in 2006, leveraged ETFs—known for magnifying both potential gains and losses—have seen immense growth. There are now over 200 products in the market, with some being incredibly popular. For example, assets in the 3x Nasdaq ProShares UltraPro QQQ TQQQ have ballooned to $23 billion.

More recently, leveraged ETFs on popular individual stocks like NVIDIA NVDA, Tesla TSLA, and MicroStrategy MSTR have also gained traction.

These ETFs aim to achieve their stated performance goal on a daily basis, but their performance can diverge significantly from their stated objectives if held for longer periods.

Compounding can have both favorable and adverse effects on returns, and these products perform best in trending markets with low volatility. When the underlying security is volatile, the risks of underperformance increase.

The Tradr suite of calendar reset funds includes options that provide leveraged exposure to the performance of SPDR S&P 500 ETF SPY, Invesco QQQ QQQ, and iShares Semiconductor ETF SOXX, as well as individual stocks like NVIDIA and Tesla.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

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NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

Invesco QQQ (QQQ): ETF Research Reports

SPDR S&P 500 ETF (SPY): ETF Research Reports

MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report

iShares Semiconductor ETF (SOXX): ETF Research Reports