ETN premiums can evaporate in an instant, saddling an investor with losses.
Swapping from SMHD to SMHB would have saved 10 months' worth of distributions in 3 months.
Swapping from MORL to MRRL would have saved 4 months' worth of distributions in 1.5 months.
Don't let ETN premium reversion catch you out!
Note: The first part of this article was released to members on September 17, 2019.
In June of this year ("ETRACS 2x Leveraged ETN Snapshot, June 2019: MORL And SMHD At Or Near Record