So I was reading the prospectus to look at the ER of the etn BULZ and surely I must be mistaken that the expense ratio is around 7% right?
The prospectus reads: "The notes are listed on the NYSE Arca, Inc., under the ticker symbol “BULZ.” The notes initially settled on August 20, 2021. The Investor Fee (based on a rate of 0.95% per annum) and the Daily Financing Charge (which is based on the Federal Reserve Bank Prime Loan Rate plus an amount that will initially be 2.25%, but which may be increased to up to 5.00% per annum) are deducted from the closing indicative value on a daily basis. If you elect for us to redeem your notes, your payment may be subject to a Redemption Fee Amount of 0.125%.
Seeing as the prime rate is currently 3.5%, wouldn't this mean the cost of holding this (per annum) is 0.95% + 3.5% + 2.25% totaling 6.7%? I seriously hope I'm misunderstanding this.
Submitted May 01, 2022 at 11:22PM by ticktock1001 https://ift.tt/FHilwkM
