ERX provides 2x leveraged exposure to the S&P Energy Select Sector Indexa market-cap-weighted index of US energy companies from the S&P 500, heavily-weighted towards the handful of firms that dominate the energy sector. Providing hyper-concentrated exposure to a concentrated sector, ERX isnt designed to be a long-term investmentinstead, it should be used as a short-term trading vehicle. The fund rebalances daily. As a result, compounding and path dependency make its long-term returns difficult to predict when compared with its underlying index and beta-1 funds, such as XLE, that track that index. Note: Prior to March 31, 2020, the fund provided 3x daily exposure to the same index.
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