3X GOLD MINERS (LONG ONLY)
The MicroSectors™ Gold Miners 3X Leveraged Exchange Traded Note (ETN) provides investors with the opportunity to gain exposure to the performance of two of the largest gold mining exchange traded funds, the VanEck Gold Miners ETF (GDX) and the VanEck Junior Gold Miners ETF (GDXJ), with its underlying composition being market capitalization weighted across both ETFs. The ETN seeks a return that is three times (3x) the daily performance of the S-Network MicroSectors™ Gold Miners Index, before taking into account fees.
The ETN is linked to the performance of the S-Network MicroSectors™ Gold Miners Index, which tracks the performance of the GDX and GDXJ ETFs. The index is designed to provide investors with exposure to the gold mining industry and is market capitalization weighted across both ETFs. The index composition provides investors with exposure to a broad range of gold mining companies and seeks to provide a diversified portfolio.
It is important to note that the MicroSectors™ Gold Miners 3X Leveraged ETN is a leveraged product and is designed to provide a return that is three times (3x) the daily performance of the underlying index. As such, the ETN is not intended to be held for longer than a single day and should not be considered a “buy and hold” investment. Additionally, as with all leveraged products, the ETN is not insured by the FDIC and may lose value.
Investors who are interested in gaining exposure to the gold mining industry and who have a high tolerance for risk may find the MicroSectors™ Gold Miners 3X Leveraged ETN to be a suitable investment option. However, it is important to thoroughly research and understand the risks associated with leveraged products before investing. As with any investment, it is important to consider one’s investment goals, risk tolerance, and overall portfolio diversification before making any investment decisions.