r/letfs
Fee comparison for the new 2x SpaceX ETFs
Author shares a fee comparison chart for upcoming 2x leveraged SpaceX ETFs based on SEC filings.
Hey all! there’s been a lot of chatter about the upcoming SpaceX leveraged ETF launches, so I made a quick fee comparison graphic while going through the filings.
Sharing it here in case it saves anyone else some time. I know fees aren’t the only thing that matters with LETFs, but when a bunch of similar products hit the market at once, it’s one of the easiest places to start.
Interested to hear which factors you think will matter most here besides expense ratio.
https://preview.redd.it/v8zewrf9cn6h1.jpg?width=1200&format=pjpg&auto=webp&s=9e656661344152658c570e21bddf5164b80f2e29
Curious how, from the funds point of view, they can justify having the same product but charging 2x the ER (1.5% vs 0.75%). But also how someone buying can justify paying 2x as much for the same product.
I can understand people paying a little bit more for more known providers like ProShares because of volume and liquidity, but yeah, no clue why anyone would pay 1.5% for fucking T-Rex.
because the TER also includes asteroid insurance, you can buy high and sell prehistoric and because he will eat your whole portfolio. 🦖
When can you start buying these etfs?
Monday
Got it, thanks! Are you bearish or bullish on spacex
I will take $ELON 3x on LSE
It’s crazy that lesser-known issuers are charging so much more than issuers that have been around for decades.
Will be nice for wheel strategy I guess
Fees are not the only thing that matter, exactly. In fact, I don't even care about them. These are very short term holdings if you are degenerate enough to hold it, and the fees are annual
I'm pretty sure the fee is deducted on a daily basis precisely to avoid people evading the fee.
Yeah, that’s basically right. the expense ratio is an annual fee, but it’s usually accrued daily through NAV rather than charged as a separate bill, so even short-term holders still pay their slice.
So what do you care about? The ETFs are otherwise identical
Tracking errors. There is a significant difference between different single stock 2x etfs and how well they track the underlying. That is my main concern. The fees are nothing compared to that. But then, I do not hold these for any significant period of time
On names as liquid and easy to hedge as Tesla,. Nvidia and surely SpaceX, tracking error should be virtually zero. In fact, the main source of tracking error (in the absence of swap capacity/events) should be... fees.
If you look at the 3x Tesla from Leverage Shares in Europe, tracking error is just fees (including funding costs).
So, all things equal (and they largely are), I'll stick to the lowest fee provider, thank you very much.