Stock Expert AI

DRR ETF — Holdings & Analysis

The Market Vectors Double Short Euro ETN (DRR) is an equity-based exchange-traded note with $0.01 billion in assets under management. DRR seeks to replicate, net of expenses, the Double Short Euro Index, offering a leveraged inverse exposure to the Euro currency. With an expense ratio of 0.65%, DRR provides a way for investors to potentially profit from the weakening of the euro relative to the U.S. dollar through a 2x leveraged strategy. Past performance does not guarantee future results.

Market Vectors Double Short Euro ETN (DRR) ETF — Price, Holdings & Analysis

The Market Vectors Double Short Euro ETN (DRR) is an equity-based exchange-traded note with $0.01 billion in assets under management. DRR seeks to replicate, net of expenses, the Double Short Euro Index, offering a leveraged inverse exposure to the Euro currency. With an expense ratio of 0.65%, DRR provides a way for investors to potentially profit from the weakening of the euro relative to the U.S. dollar through a 2x leveraged strategy. Past performance does not guarantee future results.

ETF Overview

The investment seeks to replicate, net of expenses, the Double Short Euro Index. As the index is two-times leveraged, for every 1% weakening of the euro relative to the U.S. dollar, the level of the index will generally increase by 2%, while for every 1% strengthening of the euro relative to the U.S. dollar, the index will generally decrease by 2%.
DRR, the Market Vectors Double Short Euro ETN, is designed for investors seeking a leveraged inverse relationship to the Euro currency. The ETN aims to replicate the Double Short Euro Index, which means it is designed to deliver two times the inverse of the daily performance of the Euro relative to the U.S. dollar. This makes DRR suitable for sophisticated investors who have a short-term bearish outlook on the Euro and understand the risks associated with leveraged products. It is important to note that as an ETN, DRR's returns are linked to the creditworthiness of the issuer, adding another layer of risk compared to traditional ETFs. DRR does not hold traditional equity or fixed income assets; its performance is solely derived from the leveraged movements of the Euro against the U.S. dollar. Past performance does not guarantee future results.

Risk Metrics

DRR carries a high level of risk due to its leveraged nature and focus on a single currency. The 2x leverage means that losses can be magnified, and the fund can be highly volatile. With a beta of 7.00 (3Y), DRR is significantly more volatile than the overall market. The 0.65% expense ratio can also create a drag on performance, especially in periods where the Euro's movements are not strongly directional. As an ETN, DRR also carries issuer risk, meaning that the fund's value could be affected by the creditworthiness of the issuing institution. Investors should carefully consider their risk tolerance and understand the potential for significant losses before investing in DRR. Past performance does not guarantee future results.

Expense Ratio

0.65%

Dividend Yield

0.00%
  • <a href="/etf/qvml">Invesco S&P 500 QVM Multi-factor ETF (QVML)</a> — 0.11% expense ratio
  • <a href="/etf/gxg">Global X - MSCI Colombia ETF (GXG)</a> — 0.62% expense ratio
  • <a href="/etf/fmcx">FM Focus Equity ETF (FMCX)</a> — 0.70% expense ratio
  • <a href="/etf/omfs">Invesco Russell 2000 Dynamic Multifactor ETF (OMFS)</a> — 0.39% expense ratio
  • <a href="/etf/xbi">State Street SPDR S&P Biotech ETF (XBI)</a> — 0.35% expense ratio
  • <a href="/etf/bamd">Brookstone Dividend Stock ETF (BAMD)</a> — 0.95% expense ratio
  • <a href="/etf/agix">KraneShares Artificial Intelligence & Technology ETF (AGIX)</a> — 0.99% expense ratio
  • <a href="/etf/lseq">Harbor Long-Short Equity ETF (LSEQ) (LSEQ)</a> — 2.28% expense ratio

Risk Metrics

  • Beta: 7.00

Questions & Answers

What is DRR and what does it track?

The Market Vectors Double Short Euro ETN (DRR) is an exchange-traded note that seeks to replicate, before fees and expenses, the performance of the Double Short Euro Index. This index is designed to provide two times the inverse (opposite) of the daily performance of the Euro relative to the U.S. dollar. Essentially, DRR aims to deliver gains when the Euro weakens against the dollar and losses when the Euro strengthens. As an ETN, DRR's returns are also subject to the credit risk of the issuing institution. The fund's NAV is $68.93 and has an AUM of $0.01B.

What is the expense ratio for DRR?

The expense ratio for DRR is 0.65%. This means that for every $10,000 invested in the ETN, $65 is deducted annually to cover operating expenses. While there isn't a direct category average for double-short currency ETNs, the expense ratio is higher than many broad-based equity ETFs, where expense ratios can be as low as 0.03%. the may be worth researching expense ratio as part of the overall cost of investing in DRR, especially given its leveraged and potentially volatile nature.

What are the top holdings in DRR?

As an ETN, DRR does not hold traditional assets like stocks or bonds. Instead, its performance is linked to the Double Short Euro Index through a debt obligation of the issuing institution. Therefore, there are no specific 'holdings' in the conventional sense. The ETN's value is derived from the leveraged inverse performance of the Euro relative to the U.S. dollar. Investors are exposed to the credit risk of the issuer, as the ETN is essentially a promise to pay based on the index's performance.

Is DRR a good long-term investment?

DRR is generally not considered a suitable long-term investment due to its leveraged nature and focus on short-term currency movements. The ETN is designed to deliver two times the inverse of the daily performance of the Euro relative to the U.S. dollar, which means its performance can be highly volatile and unpredictable over longer periods. The high beta of 7.00 further underscores its sensitivity to market fluctuations. Investors should carefully consider their risk tolerance and investment objectives before considering DRR, as it is primarily intended for short-term tactical trading strategies. Past performance does not guarantee future results.

How does DRR compare to similar ETFs?

DRR is somewhat unique as a double-short Euro ETN. Most currency ETFs offer either direct long exposure or single-inverse exposure. Its expense ratio of 0.65% is on the higher side compared to non-leveraged currency ETFs. Given its small AUM of $0.01B, DRR may also have wider bid-ask spreads, potentially increasing transaction costs. Investors should carefully compare DRR's leverage, expense ratio, and trading volume to other currency ETFs and ETNs to determine the most suitable option for their specific investment strategy.

Does DRR pay dividends?

DRR does not pay dividends. As an ETN that tracks a currency index, its returns are based on the movements of the Euro relative to the U.S. dollar, not on dividend payments from underlying assets. The ETN's objective is to provide leveraged inverse exposure to the Euro, and any gains are realized through changes in the ETN's price, not through dividend distributions. The dividend yield is reported as 0.00%.