Gold Leveraged ETF 3x Investment Strategy and Details

Investing in a 3x gold leveraged ETF can be a high-risk, high-reward strategy. This type of investment is designed to track the daily performance of gold, but with a three times multiplier.

The goal of a 3x gold leveraged ETF is to provide investors with a way to amplify their returns in a rapidly changing market. It's not a get-rich-quick scheme, but rather a way to make the most of market fluctuations.

To use this strategy effectively, you'll need to understand the fees associated with the ETF, which can be substantial. For example, the ProShares UltraGold ETF charges a management fee of 0.95%.

The ProShares UltraGold ETF aims to provide three times the daily performance of gold, but it's essential to keep in mind that this is a daily reset, meaning the multiplier is reset at the end of each trading day. This can result in significant differences in performance over time.

A Gold Leveraged ETF 3x can be a powerful tool for investors looking to amplify their gold holdings.

The fund's 3x leverage means that for every dollar invested, the fund will aim to return $3, assuming the price of gold increases.

This type of fund typically uses futures contracts to achieve its leveraged effect, which can be a bit complex but ultimately allows the fund to multiply the investor's returns.

The fees associated with a Gold Leveraged ETF 3x can be substantial, with some funds charging as much as 1.5% per year.

Keep in mind that these fees can eat into your returns, so it's essential to carefully consider them before investing.

When investing, it's essential to understand the different listings available for a particular investment. Listings can vary depending on the market and currency.

The XETRA exchange lists PCFP in EUR, while gettex also lists PCFP in EUR.

The Borsa Italiana lists 3GOL in EUR, which is the same ticker used for PCFP in EUR on other exchanges.

The London Stock Exchange lists 3LGO in GBX and 3GOL in USD, which is also listed in EUR on the Borsa Italiana.

Here are the listings for the investment:

When investing, it's essential to consider the costs involved. The ongoing charge, also known as OCF or TER, is a significant factor to consider, coming in at 3.87%.

This ongoing charge is made up of various components, including a management fee of 0.99%. The indicative spread is another factor, amounting to 0.12%.

Here's a breakdown of the costs in a simple table:

It's worth noting that in some cases, additional costs may apply if no TER or OCF is shown. Be sure to review the Key Investor Information Document, Factsheet, Prospectus, and any other relevant documentation before investing.

The MicroSectors Gold Miners 3X Leveraged ETNs are listed on the NYSE Arca exchange under the ticker GDXU. They were issued on December 7, 2020.

The underlying ticker for these ETNs is MINERS. This means that the performance of the ETNs is directly tied to the performance of the S-Network MicroSectors Gold Miners Index.

The ETNs have a maturity date of June 29, 2040, and as of January 15, 2025, the closing indicative note value is $33.6900.

Here are some key statistics for the MicroSectors Gold Miners 3X Leveraged ETNs as of January 15, 2025:

It's worth noting that the return on the MicroSectors Gold Miners 3X Leveraged ETNs is linked to a three times leveraged participation in the performance of the S-Network MicroSectors Gold Miners Index, compounded daily, minus the applicable fees.

Gold leveraged ETFs, such as the 3x, are designed to provide three times the daily return of gold, but they can be volatile and may not be suitable for all investors.

Be aware that these ETFs use a technique called "rolling" to maintain their 3x leverage, which can result in significant losses if the gold market moves against them.

The 3x leveraged ETFs are not suitable for long-term investing, as their performance can be highly unpredictable and may not track the underlying gold price accurately.

Their high fees can eat into your investment returns, so it's essential to carefully review the costs involved before investing in a gold leveraged ETF 3x.

In addition, these ETFs can be subject to liquidity risks, which can make it difficult to sell your shares quickly or at a fair price.

Gold leveraged ETFs, like the 3x, have a unique market data profile. They're designed to amplify the daily performance of gold prices, but with a catch: they're only suitable for short-term trading.

The 3x gold leveraged ETF has a high daily trading volume of around 1 million shares. This can lead to liquidity issues if there's a sudden surge in trading activity.

Gold prices can be highly volatile, with a 1-day move of up to 5% not uncommon. This volatility is amplified in leveraged ETFs like the 3x.

The 3x gold leveraged ETF has an average daily price change of around 30%. This is significantly higher than the average daily price change of gold itself, which is around 1%.

Gold prices are influenced by a range of factors, including central bank policies, economic indicators, and market sentiment. These factors can have a significant impact on the price of gold and, by extension, the 3x gold leveraged ETF.