MAX S&P 500 4x Leveraged ETN

SPYU

Market cap $425M

SPYU is a 4x leveraged ETN designed for daily trading, not long-term holding, due to compounding and daily reset effects. The key risk is issuer credit (Bank of Montreal), not underlying holdings or management fees, making internal structure less relevant. SPYU is best used for short-term speculation or hedging, not as a core investment or buy-and-hold strategy.

We highlight five leveraged ETFs that soared on Wall Street???s comeback after the announcement of a 90-day tariff pause.

We highlight a bunch of the best-performing leveraged equity ETFs of 2024.

In the period following the U.S. presidential election of 2024, financial markets are preparing for a second Trump administration and, with it, the potential for a host of new financial policies, regulations, and other decisions likely to impact the economy. It remains early to predict the exact nature of these changes, but the market has generally moved upward since the date of the election, with the S&P 500 climbing about 3.2% since that day.

MAX S&P 500 4X Leveraged ETN is a risky investment that could seriously hurt someone's life savings. However, if used as a relatively small piece of a larger puzzle, SPYU could help to deliver market-beating returns over the long run. Having said the above, many individual investors might want to stay away from this ETN due to its potential for causing irreparable damage to a portfolio, if not handled right.

You've likely heard of 3x Leveraged ETFs - welcome to SPYU, the first 4x levered ETN that tracks the S&P 500. The extreme leverage employed by this fund immediately disqualifies it as a long-term investment vehicle due to the potential for permanent capital impairment. However, the built in volatility is interesting from a portfolio construction standpoint.

Investors can now make turbocharged bets on or against the Magnificent Seven group of stocks due to the launch of an exchange-traded product offering five times leverage on the hot megacap technology sector. Of course, that doesn't mean they should.

ETF assets have grown at a 15% CAGR since 2010, outpacing traditional mutual funds. ETFs now offer both passive and active investment strategies, including leveraged and volatility-related products. The MAXTM SPX 500® 4X Leveraged ETN leverages the S&P 500 by 4x, but holding it long-term can lead to disappointing returns.

The Fed wants to cut interest rates and add liquidity before the US election, but the market is not cooperating.

MAX S&P 500 4X Leveraged ETN is a tool that aims to provide 4x amplified returns of the S&P 500, and it has proven to be effective so far. Leveraged products like XXXX can be used to create expanded-canvas portfolios with increased risk/reward ratios, especially when combined with uncorrelated assets like bonds and managed futures.