LQDD -3x MicroSectors -3x Short Investment Grade Corporate Bond (LQD) ETNs

BEAR ETF extreme · Issuer MicroSectors · Tracks underlying

Quote & options All leveraged ETFs

Implied AUM

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shares out × price

Last close

$54.87

20261001

30-day avg volume

593

no listed options

LQDD realized

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what holders actually earned

Theoretical -3x

—

-3x × underlying's return

Decay gap

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realized minus theoretical

Realized vs theoretical -3x underlying

Cumulative return of LQDD against a clean -3x of underlying's return over the same window; the red line (right axis) is the gap between them.

How LQDD works

LQDD targets -3x the daily return of underlying — not the return over longer windows. It rebalances every day, so over weeks and months its result drifts away from -3x × the index, usually downward when the market chops around.

The maths: the drag is roughly −½ × N × (N−1) × σ² per period (N = leverage, σ = the index's volatility). For a -3x fund on an index with 25% annual volatility that is several percent a year before fees — the red line above is that drag measured.

Short-term trades (a day or a few) are what these funds are built for. Premium sellers like their rich option IV — see the quote page. Multi-day directional bets work in strong trends and get eaten in chop.

Not investment advice.