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SPXU

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Analysis and statistics

  • Open
    28.1682$
  • Previous Close
    28.1682$
  • 52 Week Change
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  • Day Range
    0.00$
  • 52 Week High/Low
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  • Dividend Per Share
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  • Market cap
    --$
  • EPS
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  • Beta
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  • Volume
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About

SPXU.TO refers to the Horizons BetaPro S&P 500 3x Bear ETF. It is a Canadian-listed exchange-traded fund (ETF) that aims to provide three times the inverse (opposite) of the daily performance of the S&P 500 index. This means it is designed to increase in value when the S&P 500 declines and decrease in value when the S&P 500 rises, with a leverage factor of three.

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Factors

Leverage: SPXU.TO is a leveraged ETF, meaning it aims to deliver 3 times the inverse daily performance of the S&P 500. Therefore, its price is highly sensitive to short-term movements in the S&P 500 index.

S&P 500 Performance: As an inverse ETF, SPXU.TO's price generally moves in the opposite direction of the S&P 500. A decline in the S&P 500 is expected to lead to an increase in SPXU.TO's price, and vice versa.

Compounding Effect: Due to the daily reset of leverage, the compounding effect can significantly impact SPXU.TO's returns over longer periods. This effect can lead to deviations from the expected 3x inverse performance, especially in volatile markets.

Management Fees and Expenses: The ETF's expense ratio and other associated costs reduce the overall return. Higher fees relative to similar ETFs can negatively impact its price performance.

Supply and Demand: Market forces of supply and demand for SPXU.TO shares can cause its price to fluctuate, potentially leading to premiums or discounts relative to its net asset value (NAV).

Volatility: Increased market volatility can amplify the effects of leverage, leading to more significant price swings in SPXU.TO. High volatility can also erode value due to the compounding effect.

Interest Rates: Changes in interest rates can affect the cost of borrowing associated with the leveraged strategy, impacting the ETF's overall returns and price.

Canadian Dollar Exchange Rate: Since SPXU.TO is traded on the Toronto Stock Exchange (TSX), fluctuations in the Canadian dollar (CAD) relative to the U.S. dollar (USD) can influence its price for Canadian investors.

Index Tracking Error: The ETF's ability to accurately track the 3x inverse daily performance of the S&P 500 can affect its price. Tracking error can arise from various factors, including trading costs and imperfect replication of the index.

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