I am really confused by how were fees of leveraged etf like SPUU calculated.

0.64% is quite costly for a index based ETF. I wonder is the cost a pure cost or does it include the cost of interest?

The fact sheet seems did not clarify the cost well, any good way to analyze the source of cost of these ETF?

  • 1
    $\begingroup$ Yes, look at the term sheet or the prospectus (there would be more details on the latter). From the prospectus, the expense ratio is decomposed in 0.50% for management fees, 0.43% for other expenses, 0.04% for acquired fund fees and a -0.33% waiver. $\endgroup$ Commented Nov 4, 2020 at 9:01
  • $\begingroup$ I've always thought the ideal for companies like Powershares who run both leveraged long AND short funds would be that they get exactly equal interest in both on a given day, and can write a zero-cost CFD between them. Of course, that's unlikely - but it seems their overall cost would be a function of the difference in interest for the two. I guess there is no rebate for the investor if cost is lower-than-expected, however?! $\endgroup$
    – StackG
    Commented Nov 5, 2020 at 1:12
  • $\begingroup$ @StackG it is definitely not possible, I think, due to the need for daily rebalance. $\endgroup$ Commented Nov 6, 2020 at 9:08
  • $\begingroup$ @Olivaw I don't think I get what does the 0.43% mean. It sounds too low of an interest rate to me. $\endgroup$ Commented Nov 6, 2020 at 9:08


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