Understanding Micron Leveraged ETFs and Their Risks

Micron Leveraged ETFs can be a powerful tool for investors looking to amplify their returns, but they come with unique risks that need to be understood.

These ETFs use debt to magnify the returns of a specific stock or index, in this case Micron Technology. The resulting leverage can be a double-edged sword, amplifying both gains and losses.

Investors who are new to leveraged ETFs should understand that the goal is not to time the market perfectly, but to ride the trend as long as it lasts. As we'll explore in the next section, this can be a challenge, especially in a rapidly changing market.

A common misconception about leveraged ETFs is that they are a way to guarantee returns. In reality, these funds are designed to track the performance of a specific index or stock, and the results can be unpredictable.

The Pricing and Performance of the Micron Leveraged ETF is a crucial aspect to consider when making investment decisions.

The Net Asset Value (NAV) and Market Price information as of 01/27/2025 is available, but the 1M, 3M, YTD, 1Y, 3Y, 5Y, and 10Y returns are not provided for all funds.

The Expense Ratio for MUUNAV and MUUMarket Close is 0.99 / 0.97%, while for MUDNAV and MUDMarket Close it is 0.99 / 0.97%.

The Inception Date for all funds is 10/10/2024.

Here is a summary of the key statistics:

It's worth noting that the Net Expense Ratio includes management fees, other operating expenses and Acquired Fund Fees and Expenses.

The Leverage Shares 2x Micron Technology ETP Securities has seen significant fluctuations in its performance over the years. The 1-year performance was +13.79%.

Volatility is a major concern, with a 1-year volatility of 91.64%. This means the fund's value can change rapidly. The maximum drawdown over 1 year was -66.96%.

Looking at the Sharpe Ratio, a measure of risk-adjusted return, it's 0.05 over 1 year. This indicates a relatively low return for the level of risk taken.

Here are some key performance metrics:

Over the long term, the fund has experienced significant losses, with a -39.39% return over 3 years.

Risk Indicators are a crucial aspect of investing, and it's essential to understand the potential risks involved. Volatility is a significant indicator of risk, and the Leverage Shares 2x Micron Technology ETP Securities have shown a high volatility of 91.64% over the past year.

The maximum drawdown is another critical factor, and in this case, it has reached -66.96% over the past year. This means that if you had invested in this security, you could have potentially lost up to 66.96% of your investment.

The Sharpe Ratio is a measure of risk-adjusted return, and it's calculated by subtracting the risk-free rate from the return of the investment and then dividing the result by the standard deviation of the return. The Sharpe Ratio for this security is 0.05 over the past year, indicating a relatively low risk-adjusted return.

Here's a summary of the key risk indicators for the Leverage Shares 2x Micron Technology ETP Securities:

The performance of Leverage Shares 2x Micron Technology ETP Securities can be quite volatile.

Over the past 1 week, the fund has seen a significant gain of +14.90%. However, this is not a consistent trend, as it has actually lost -9.71% in the past 1 month.

Looking at the fund's performance over the past 3 months, it has lost -3.79%. This is a relatively modest loss compared to the -22.58% decline seen over the past 6 months.

Despite the short-term losses, the fund has seen some remarkable gains in the past. For example, it has gained +13.79% over the past year, and a whopping +133.04% in 2023.

Here's a summary of the fund's performance over the past few years:

It's worth noting that the fund has had some significant losses in the past, such as the -76.36% decline in 2022. However, it's also had some remarkable gains, such as the +133.04% gain in 2023.

If you're considering investing in a Micron Leveraged ETF, it's essential to understand the potential risks and rewards.

The Micron Leveraged ETF has a maximum daily loss of 50% of the ETF's net asset value (NAV), which is a significant risk factor to consider.

Leverage can amplify gains, but it can also amplify losses, making it a high-risk investment.

To minimize losses, it's crucial to set a stop-loss order, which can help limit your losses if the investment declines.

A stop-loss order can be set at a specific price, and if the investment falls to that price, the order is triggered, and the investment is sold.

This can help you avoid significant losses, but it's not a guarantee against losses.

The Micron Leveraged ETF is designed to track the daily performance of Micron Technology, a leading manufacturer of computer memory and storage products.

The ETF uses derivatives to achieve its investment objective, which can increase its exposure to market volatility.

It's essential to consider your investment goals, risk tolerance, and time horizon before investing in a Micron Leveraged ETF.

A long-term investment strategy can help you ride out market fluctuations and potentially benefit from the ETF's long-term growth.

The data for Leverage Shares 2x Micron Technology ETP Securities comes from Morningstar, CoinGecko, and Isarvest GmbH.

The base data is provided by these sources, while the delayed market prices are sourced from various providers.

Isarvest GmbH does not guarantee the accuracy of the information presented and cannot ensure that the data is complete.

The data is sourced from a variety of places, including Lang & Schwarz for actions, ETFs, and funds, and CoinGecko for cryptocurrency.