The Leverage Shares 2x Long ADBE Daily ETF (ADBG) is designed for active traders seeking amplified short-term exposure to Adobe (ADBE) stock. With $0.03B in assets under management, ADBG aims to deliver two times the daily performance of ADBE, before fees and expenses. Its 0.75% expense ratio reflects the cost of this leveraged strategy. ADBG should be used as a short-term tactical tool, not a long-term investment, due to the effects of compounding and volatility on leveraged returns. Past performance does not guarantee future results.
The Leverage Shares 2x Long ADBE Daily ETF (ADBG) is designed for active traders seeking amplified short-term exposure to Adobe (ADBE) stock. With $0.03B in assets under management, ADBG aims to deliver two times the daily performance of ADBE, before fees and expenses. Its 0.75% expense ratio reflects the cost of this leveraged strategy. ADBG should be used as a short-term tactical tool, not a long-term investment, due to the effects of compounding and volatility on leveraged returns. Past performance does not guarantee future results.
ETF Overview
The Leverage Shares 2x Long ADBE Daily ETF (ADBG) is a 2x Daily Leveraged (Bull) ETF designed for active traders seeking to magnify short-term results. The ADBG ETF aims to achieve two times (200%) the daily performance of ADBE stock, minus fees and expenses.
The Leverage Shares 2x Long ADBE Daily ETF (ADBG) offers a leveraged approach to investing in Adobe (ADBE) stock. This ETF is designed for sophisticated investors and active traders who seek to magnify their daily returns based on the performance of ADBE. ADBG aims to provide two times (200%) the daily percentage change in the price of ADBE, making it a potentially high-reward, high-risk investment vehicle. The fund rebalances daily to maintain its 2x leverage, which can lead to compounding effects over longer periods, potentially deviating from the intended 2x exposure. The fund's top holding is First American Treasury Obligs X (FXFXX) at 8.06%, suggesting a portion of the fund's assets are held in short-term U.S. Treasury obligations. With 100% of its exposure in 'Other' countries, the fund's geographic diversification is limited.
Risk Metrics
ADBG carries significant risks inherent in its leveraged structure. The 2x daily leverage means that losses can be magnified just as gains can be. The 0.75% expense ratio is relatively high, which can erode returns over time, especially if the ETF does not perform as expected. The fund's concentration in a single stock (through its leveraged exposure to ADBE) makes it highly sensitive to the price movements of that stock. The daily rebalancing to maintain the 2x leverage can lead to volatility and potential tracking error, especially in choppy markets. The fund's beta of 0.00 may be misleading due to the leveraged nature of the fund, which is designed to amplify market movements rather than reflect overall market volatility. Past performance does not guarantee future results.
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Risk Metrics
Beta: 0.00
Questions & Answers
What is ADBG and what does it track?
The Leverage Shares 2x Long ADBE Daily ETF (ADBG) is a leveraged exchange-traded fund (ETF) that seeks to deliver two times (200%) the daily performance of Adobe (ADBE) stock. This means that if Adobe's stock price increases by 1% on a given day, ADBG aims to increase by 2%, and vice versa. It is designed for active traders who want to magnify their short-term gains or losses based on the daily movements of ADBE. However, due to the effects of compounding, its performance over longer periods may deviate significantly from 2x the cumulative return of ADBE.
What is the expense ratio for ADBG?
The expense ratio for ADBG is 0.75%. This means that for every $10,000 invested in the fund, $75 is deducted annually to cover the fund's operating expenses. While there is no specific category average for leveraged single-stock ETFs, this expense ratio is generally higher than traditional, non-leveraged equity ETFs, which often have expense ratios below 0.50%. The higher expense ratio reflects the costs associated with managing the fund's leverage and daily rebalancing.
What are the top holdings in ADBG?
As a leveraged ETF, ADBG's primary exposure is achieved through financial instruments that provide leveraged returns linked to the performance of Adobe (ADBE) stock. The ETF's top holding is First American Treasury Obligs X (FXFXX), comprising 8.06% of the fund. This holding likely serves as collateral or a cash management tool within the fund's structure. The remaining assets are dedicated to derivatives and other instruments used to achieve the desired 2x leverage on ADBE's daily performance.
Is ADBG a good long-term investment?
ADBG is generally not considered a suitable long-term investment due to its leveraged nature and daily rebalancing. The 2x daily leverage means that its performance can deviate significantly from 2x the cumulative return of Adobe (ADBE) over longer periods, especially in volatile markets. The effects of compounding can erode returns or amplify losses over time. With an expense ratio of 0.75%, the cost of holding ADBG can also impact long-term performance. It is designed for short-term tactical trading rather than long-term strategic allocation. Past performance does not guarantee future results.
How does ADBG compare to similar ETFs?
ADBG is unique in that it offers 2x leveraged exposure specifically to Adobe (ADBE) stock. Other leveraged ETFs may focus on broader market indices or different sectors. The fund's expense ratio of 0.75% is typical for leveraged ETFs, reflecting the higher costs of managing these complex instruments. With AUM of $0.03B, ADBG is relatively small compared to more established leveraged ETFs. Investors should compare ADBG's tracking error and volatility to other leveraged ETFs to assess its effectiveness in delivering the intended 2x daily exposure to ADBE.
Does ADBG pay dividends?
According to the provided data, ADBG has a dividend yield of 0.00%. This indicates that the fund does not currently distribute any dividends to its shareholders. The fund's focus is on delivering leveraged daily returns based on the price movements of Adobe (ADBE) stock, rather than generating income through dividends. Investors seeking dividend income should consider other ETFs that focus on dividend-paying stocks.