The issuer of the BABX ETF is GraniteShares Advisors LLC. This actively managed exchange-traded fund aims to replicate 1.75 times (175%) the daily percentage change of the underlying stock by entering into swap agreements on the underlying stock. GraniteShares Advisors LLC has a strategy of generating 1.75 times the daily performance of the underlying stock for a single day. The fund achieves this by entering into swap agreements with major financial institutions and may also invest in U.S. Government securities, money market funds, short-term bond ETFs, and corporate debt securities. Investors should be aware that due to daily rebalancing and compounding, the fund's returns for periods longer than a single day may differ from 175% of the underlying stock's return over the same period.
While the primary focus of the BABX ETF may not center around dividends, it still reflects the dividend distribution of the underlying assets within its portfolio. Dividend distributions typically occur periodically and are influenced by the dividend policies and performances of the securities held by the ETF. Investors should review the ETF's holdings to assess its potential for dividend returns and consider its overall investment objectives.
Tracking the daily performance of the Underlying Stock is the primary objective of the BABX Tracking ETF. This actively managed exchange-traded fund aims to replicate 1.75 times (175%) the daily percentage change of the Underlying Stock through swap agreements with major financial institutions. These swap agreements involve the exchange of returns or differentials in rates of return on the Underlying Stock. The Fund may also invest in U.S. Government securities, money market funds, short-term bond ETFs, and corporate debt securities as collateral for its swap agreements. With a policy to have at least 80% of its investment exposure tied to assets with economic characteristics that should mirror 1.75 times the performance of the Underlying Stock, BABX Tracking offers investors a leveraged approach to tracking the underlying assets, although it is essential to consider the compounding effects and potential risks associated with such leveraged strategies.
The correlation aspect of the GraniteShares 1.75x Long BABA Daily ETF plays a crucial role in understanding its behavior in relation to its underlying assets. While specific information about BABX's correlation is not available, understanding correlations is essential for investors looking to assess its performance within their portfolios. To gain insights into BABX's correlation with various assets and sectors, investors can use ETF Insider's web app, which offers a comprehensive and easy-to-use visualization tool. This tool allows investors to study correlations and overlaps, providing valuable data for making informed investment decisions.
The BABX Sector ETF is primarily focused on the business services industry. It aims to replicate 1.75 times the daily percentage change of the Underlying Stock through swap agreements with major financial institutions. These agreements involve the exchange of returns on the Underlying Stock, which is concentrated in the business services sector. The ETF is expected to post between 40% and 60% of its assets as collateral under the swap agreements, and its returns over time may differ from 175% of the Underlying Stock's performance due to daily rebalancing and compounding effects. Please note that the BABX Sector ETF, the GraniteShares ETF Trust, and GraniteShares Advisors LLC are not affiliated with the Underlying Stock, Alibaba Group Holding Limited.
The exposure characteristic of the BABX ETF is designed to provide investors with a unique opportunity to gain exposure to the business services industry within the United States. The ETF''s portfolio primarily comprises securities that are carefully selected from a pool of domestic and international companies listed on major U.S. exchanges. BABX seeks to identify companies with high income potential and superior risk-return profiles, utilizing a proprietary strategy that assesses multiple factors, including dividend yield and risk-adjusted return. The securities within the ETF''s portfolio encompass a broad spectrum of large, medium, and small-sized companies, including U.S. listed common stocks, ADRs, real estate investment trusts (REITs), master limited partnerships (MLPs), closed-end funds, and traditional preferred stocks. To gain deeper insights into the exposure and correlations of BABX and other U.S. ETFs, investors can leverage the ETF Insider web app, which offers comprehensive data visualization tools for a better understanding of their investment choices.
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