Answer
The press release you provided does not disclose the specific expense ratios or fee structures for the upcoming leveraged ETFs (MDBX and LRCU). Tradr ETFs typically publishes those details in the fund’s prospectus and on its website, so you’ll need to review the official filing (Form N‑2) or the “Key Information” page for each product to get the exact numbers.
In the meantime, it’s useful to benchmark against existing single‑stock leveraged ETFs. Most 2×‑leveraged funds charge between 0.70 % – 1.00% annual expense ratios, while 3×‑leveraged counterparts often sit in the 0.90 % – 1.30% range. In addition to the management fee, expect:
Fee Component | Typical Range (for comparable leveraged ETFs) |
---|---|
Management (expense) ratio | 0.70 % – 1.30% |
Performance‑based fee (if any) | 0 % – 0.10% of assets above a hurdle rate |
Trading‑cost pass‑through (bid‑ask spread, market‑making) | Variable, but can add ~0.05 % – 0.10% annually in practice |
Trading implication: Until the exact fee schedule is confirmed, factor a ≈1 % total annual cost into your return expectations for these leveraged products. That cost will erode the daily compounding benefit, especially in volatile or sideways markets, so the ETFs are best suited for short‑term, directional plays where the anticipated price move comfortably exceeds the combined expense and financing drag. Once the prospectus is released, verify whether Tradr ETFs offers any fee discounts for high‑volume or institutional accounts, as those can materially improve the net‑return profile for frequent traders.