Hi,
For some reason the 3MST ETF which is a 3x long MSTR product has stopped at a 33% gain and is now not tracking the daily performance of MSTR
Any ideas why?
Market is closed mate.
Exchange Traded Products (ETPs) usually aim to provide a leveraged exposure based on the daily price action of the underlying security or index. When it comes to Leveraged ETPs, they may not replicate the underlying movement perfectly, as this depends solely on the ETP managers/issuers who use various methods of managing their funds.
Fund managers often use derivatives and strategies to achieve their goals, but ETPs typically have lower liquidity than their underlying assets. As a result, their market conditions can worsen during times of high volatility or large price changes in the underlying asset or the market.
On a side note, most leveraged ETPs do not align with the trading session of their underlying asset. They track the underlying asset’s performance until 16:30 GMT when the European session ends and continue at 08:00 GMT when the European session reopens. Within that timeframe, the US underlying continues trading, ends its regular session, and begins its after-hours/overnight session. Price changes on US-listed stocks always compare to the close of the previous regular session.