Tradr ETFs Transforms Leveraged Trading by Launching Industry’s First Monthly and Weekly Reset ETFs

Eight new ETFs mark the advent of “Calendar Reset Leveraged ETFs,” trading products designed to overcome the volatility drag dilemma faced by daily reset ETF investors 

NEW YORK, September 3, 2024 – Tradr ETFs, a provider of ETFs designed for sophisticated investors and professional traders, today announced the launch of eight leveraged ETFs as part of its new series of “Calendar Reset Leveraged ETFs.” Tradr’s new products reset their performance target on a calendar week or calendar month, providing an alternative to the daily resets offered by today’s leveraged ETFs. The launch represents a profound advancement in the world of leveraged trading that will significantly expand the possible uses of leverage for a variety of investment purposes. 

Weekly and Monthly Leveraged ETFs

The six new ETFs below seek 200% exposure to the weekly or monthly performance of the SPY ETF and the Invesco QQQ ETF for broad U.S. equity exposure, and to the SOXX ETF for semiconductor industry exposure.

Weekly Leveraged ETFs for Single Stocks

Tradr ETFs also introduced the following ETFs with magnified long weekly exposures to NVIDIA stock (NVDA) and Tesla stock (TSLA), complementing its two existing short daily reset ETFs, NVDS and TSLQ. 

Calendar Resets Represent a Key Evolution In the Leveraged ETF Space

Tradr’s Calendar Reset Leveraged ETFs can benefit a variety of investors, including professional portfolio managers, day traders, swing traders, financial advisors, and anyone looking to significantly increase their purchasing power. The ETFs allow investors to choose a non-daily performance reset period to better align their investment horizon with their investment conviction and return expectations.

Weekly ETFs reset performance each calendar week on the last trading day of the week, while monthly ETFs reset on the last trading day of the calendar month. Tradr also plans to launch several ETFs with calendar quarter resets on October 1.

"Since its inception in 2006, the leveraged ETF space has grown to over $100 billion in assets under management. However, only daily reset products have been made available, which effectively has shut out investors who are looking for magnified returns for any period longer than a day. In particular, the current leveraged product landscape is not very user friendly or appropriate for medium-term investors or financial intermediaries such as fee-based advisors,” explains Matt Markiewicz, Head of Product and Capital Markets at Tradr ETFs. “Our non-daily ETFs represent a long overdue tool to address the shortcomings of daily performance resets, especially for any fiduciary who needs to be concerned about suitability when selecting products for their clients."

Calendar Reset Leveraged ETFs provide a practical alternative to daily leveraged ETFs, which are specifically designed to generate an amplified return for one day only and are best suited for day traders. Years of data show that many investors hold dailies for several days, weeks or even months, leading to several challenges. The first is the erosion of returns, or “volatility drag,” caused by day-to-day price movements in the underlying security, which in turn compounds over time making it difficult to achieve the targeted leverage multiple. In addition, use of daily ETFs usually requires frequent position monitoring and rebalancing, which is time consuming and potentially generates unnecessary trading costs.

Markiewicz adds, "It's like wearing daily contact lenses for several days in a row where the longer you keep them in, the less effective they become. We expect these new ETFs will help investors achieve the leverage they envision over the timeframe they want.” 

For detailed information on Tradr ETFs and the significant risks involved with leveraged and inverse ETFs,
please visit www.tradretfs.com.