MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN (OILU)
MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN operates in the Asset Management - Leveraged industry of the Financial Services sector, headquartered in New York, NY, US. The stock last traded at $47.69, down 0.42% on the session, giving a market capitalisation of $51.3M. Its beta of -0.01 implies it has historically moved less than the broad market.
OILU is a 3x leveraged Exchange Traded Note (ETN) designed to provide magnified, bullish exposure to a concentrated selection of U.S. companies within the oil and gas sector. Its underlying index goes beyond traditional exploration and production, encompassing three distinct energy segments: integrated oil and gas, upstream activities, and downstream and midstream operations. Notably, Master Limited Partnerships (MLPs) are explicitly excluded from the index. Constituents are chosen from the top 25 companies by market capitalization, with their individual weights determined by their minimum average daily trading value over one and six-month periods. The portfolio is allocated with specific segment weightings: 30% to integrated oil and gas exploration and production, 50% to upstream energy, and 20% to downstream and midstream operations. Due to its geared nature, OILU is exclusively suited for intraday trading strategies. Holding it for extended periods can lead to substantial deviations from the index's performance, primarily because of daily compounding effects. Furthermore, as an ETN, investors are exposed to the credit risk of the issuing institution.
MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN is most often compared with the following Financial Services names: