AI Leveraged ETF Investment Guide

Leveraged ETFs are a type of exchange-traded fund that uses debt to amplify investment returns, but they can also amplify losses. This means that even a small market move can result in significant losses.

The first thing to consider when investing in leveraged ETFs is your risk tolerance. If you're not comfortable with the possibility of significant losses, it may be best to stick with traditional ETFs.

Leveraged ETFs can be a powerful tool for investors, but they require a solid understanding of how they work and the risks involved. For example, a 2x leveraged ETF that tracks the S&P 500 will move twice as much as the index, but it will also have twice the volatility.

Investors should carefully consider their investment goals and risk tolerance before investing in leveraged ETFs.

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The fund's primary goal is to track the investment results of an index composed of U.S. and non-U.S. companies contributing to artificial intelligence technologies.

This fund doesn't follow a sustainable, impact, or ESG investment strategy, which means its investment objective isn't influenced by environmental, social, or governance factors.

The metrics used by the fund don't change its investment objective or limit the companies it can invest in, and there's no indication that the fund will adopt a sustainable or ESG strategy in the future.

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The pricing and performance of an investment are crucial factors to consider. The NAV (Net Asset Value) and Market Price of the UBOT fund as of January 14, 2025, are shown below.

NAV and Market Price information as of 01/14/2025:

The expense ratio is 1.47% gross and 1.38% net, with a contractual agreement in place to limit operating expenses to 0.95% of the fund's average daily net assets until September 1, 2025.

Fees and costs are an essential aspect of investing in an AI leveraged ETF. The management fee is a significant expense, coming in at 0.47%.

The expense ratio is also 0.47%, which includes the management fee. This is the total cost of investing in the fund, expressed as a percentage of your investment.

Here's a breakdown of the fees:

Keep in mind that these fees are subject to change and may not reflect extraordinary expenses incurred by the fund in the past fiscal year.

Investing in an AI-leveraged ETF can provide a unique opportunity to tap into the growing trend of artificial intelligence. This can be a way to diversify your portfolio and potentially gain exposure to a wide range of AI-related companies.

AI-leveraged ETFs often track a specific index or sector, such as the Nasdaq CTA Artificial Intelligence Index, which is designed to track the performance of companies involved in AI development. This can be a convenient way to invest in a variety of AI-related companies with a single investment.

Investing in AI-leveraged ETFs can also be a more cost-effective option compared to investing in individual AI-related stocks. According to data, the average expense ratio for AI-leveraged ETFs is around 0.5%, which is lower than the average expense ratio for individual stocks.

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By investing in an AI-leveraged ETF, you can potentially benefit from the growth of the AI industry without having to conduct extensive research or make individual stock picks. This can be especially appealing for investors who are new to the world of AI or don't have the time to devote to research.

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