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FLXU

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Analysis and statistics

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About

FLXU.F represents the Horizons US Large Cap Equity Covered Call ETF. This ETF is listed on the Toronto Stock Exchange (TSX) and provides exposure to a portfolio of large-capitalization U.S. equities while also generating income through a covered call strategy. Specifically, it tracks the performance of an index of large-cap U.S. equities, and the fund manager sells call options on a portion of the portfolio to generate income. This strategy can limit potential upside gains but provides investors with regular distributions. Investors often use FLXU.F to gain exposure to the U.S. equity market and generate income in a single investment vehicle.

Factors

Leveraged ETF prices, like FLXU.F, are complex. Underlying Index: Price heavily relies on the S&P 500 VIX Short-Term Futures Index's performance.

Volatility Futures: VIX futures prices, especially the front-month contract, significantly influence FLXU.F's value.

Leverage Factor: Being 2x leveraged, daily percentage changes in the index are amplified, increasing price volatility.

Time Decay: Futures contracts lose value as expiration nears, impacting the ETF even if volatility is stable.

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