MVRL ETF — Holdings & Analysis

The ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN (MVRL) is an equity-based exchange-traded note providing leveraged exposure to publicly-traded mortgage REITs (mREITs) in the US.

With approximately $0.01 billion in assets under management, MVRL seeks to track the performance of these REITs, which derive at least 50% of their revenue from mortgage-related activities. It employs a 1.5x leverage factor, amplifying both gains and losses. The ETN carries an expense ratio of 0.95%. Past performance does not guarantee future results.

ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN (MVRL) ETF — Price, Holdings & Analysis

The ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN (MVRL) is an equity-based exchange-traded note providing leveraged exposure to publicly-traded mortgage REITs (mREITs) in the US. With approximately $0.01 billion in assets under management, MVRL seeks to track the performance of these REITs, which derive at least 50% of their revenue from mortgage-related activities. It employs a 1.5x leverage factor, amplifying both gains and losses. The ETN carries an expense ratio of 0.95%. Past performance does not guarantee future results.

ETF Overview

The index is designed to track the overall performance of publicly-traded mortgage REITs that are listed and incorporated in the United States and derive at least 50% of their revenues from mortgage-related activity.

MVRL offers investors a leveraged approach to gaining exposure to the mortgage REIT sector. The ETN aims to magnify the returns of an index composed of publicly-traded mREITs that generate a majority of their revenue from mortgage-related activities. By employing a 1.5x leverage factor, MVRL is designed to potentially deliver higher returns compared to a non-leveraged investment in the same basket of mREITs. However, this leverage also increases the risk of losses. Investors should note that the ETN structure carries additional risks compared to traditional ETFs, including credit risk related to the issuer, ETRACS. This ETN is suited for sophisticated investors with a high-risk tolerance who seek short-term, tactical exposure to the mREIT sector and understand the implications of leverage. Past performance does not guarantee future results.

Risk Metrics

MVRL's leveraged nature significantly amplifies its risk profile. With a beta of 1.53, the ETN is already more volatile than the broader market, and the 1.5x leverage further exacerbates price swings. The concentration in mortgage REITs exposes investors to sector-specific risks, including interest rate sensitivity and changes in housing market conditions. The ETN's relatively small AUM of $0.01 billion raises concerns about liquidity. The expense ratio of 0.95% is also a significant drag on performance, especially when compounded by the effects of leverage and potential daily rebalancing costs. Investors should carefully consider their risk tolerance and investment horizon before investing in MVRL. Past performance does not guarantee future results.

Expense Ratio

0.95%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

ETRACS IFED Invest with the Fed TR Index ETN due September 15, 2061 (IFED) (Equity) — 0.45% expense ratio
ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) (Equity) — 0.95% expense ratio
UBS AG ETRACS Crude Oil Shares Covered Call ETNs due April 24, 2037 (USOI) (Commodities) — 0.85% expense ratio

Risk Metrics

Beta: 1.53

Questions & Answers

What is MVRL and what does it track?

MVRL, or the ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN, is an exchange-traded note designed to provide 1.5 times the monthly performance of an index composed of publicly-traded mortgage REITs (mREITs).

These mREITs are listed and incorporated in the United States and must derive at least 50% of their revenues from mortgage-related activities.

What is the expense ratio for MVRL?

The ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN (MVRL) has an expense ratio of 0.95%. This fee covers the costs associated with managing and administering the ETN.

While there isn't a directly comparable category average for leveraged mREIT ETNs, this expense ratio is relatively high compared to broad-based equity ETFs, where expense ratios can be significantly lower.

What are the top holdings in MVRL?

As an ETN, MVRL does not directly hold securities. Instead, it provides exposure to an index of mortgage REITs. The specific holdings within that index will vary over time based on the index methodology.

Investors can consult the index provider's website or ETRACS's website for the most up-to-date information on the underlying index components.

How does MVRL compare to similar ETFs?

MVRL stands out due to its leveraged exposure to the mortgage REIT sector. While other ETFs offer exposure to REITs, few provide the 1.5x leverage that MVRL employs.

This leverage amplifies both gains and losses, making MVRL a higher-risk, higher-reward investment option. Its expense ratio of 0.95% is also relatively high compared to non-leveraged REIT ETFs.

Does MVRL pay dividends?

While MVRL is named "Monthly Pay", the current dividend yield is 0.00%. Investors should consult the fund's official documentation or the issuer's website for the most up-to-date information on dividend distributions.

Dividend payments are not guaranteed and can fluctuate based on the performance of the underlying index and the issuer's policies. Past performance does not guarantee future results.