3Mo·

Who knows this ETF and has long-term experience?

Hello everyone,

Who knows the $CL2 (-0,81 %) and what do you think of it?

I've had it for 5 years now and so far it has performed mega well.

I would be grateful for any feedback.

Greetings

8 Commentaires

C_Montgomery_Burns@C_Montgomery_Burns

3Mo

Isn't that the "Holy Amumbo"? I don't really have the courage to go for it yet. Great returns when prices are rising. But in a bear market or when prices are moving sideways, things are bound to turn sour very quickly. Keyword "path dependency".

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VP@VPT

3Mo

You can also mark the ETF. To do this, select $ and the ticker here on Getquin. This way nobody has a plan which ETF you mean

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Daniel@Bidax

3Mo

@VPT I hate to admit it, but I didn't like searching for the WKN 🔍 at all 🫣 $SXEI

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Robert@RP73

3Mo

@VPT Thanks for the tip.

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VP@VPT

3Mo

@RP73 with pleasure. Unfortunately, I don't know the etf 🤣
Expert for leveraged ETFd is @Epi

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Epi@Epi

3Mo

@VPT "Experte" 😂

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Epi@Epi

3Mo

I opted for this to implement the Spytips strategy. Mainly because of the lower costs, the higher volume and the slightly better performance than 2xS&P500 ETF.

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Gomerdoc@Gomerdoc

1Sem.

I love AI 😂. But still:
Well summarized here:

MSCI Leveraged Index: tracking leveraged investment strategies
The MSCI Leveraged Daily Indexes represent an innovative category of financial indices designed to replicate the returns of daily leveraged investment strategies. These indexes allow investors to benefit disproportionately from market movements by multiplying the daily performance of underlying equity indices by a specified leverage factor.
Basic concept and objective
How the leveraged indices work
MSCI Leveraged Daily Indexes aim to precisely replicate the returns of daily leveraged investment strategies. These indices are based on existing MSCI underlying indices and amplify their daily price movements through a mathematical leverage factor. For example, a 2x leveraged index means that if the underlying index rises by 1%, the leveraged index rises by 2%.
The indices take into account three key components of leveraged investment strategies: capital gains of the underlying shares, cash dividends of the companies included and interest payments to the lenders of the capital used for leverage. This comprehensive consideration of all relevant factors ensures a realistic representation of genuine leveraged investment strategies.
Mathematical principles
The daily return of the MSCI Leveraged Daily Indexes is calculated using a specific formula: RL = g × R + (1 - g) × rf × T/360, where RL is the leveraged daily return including gross dividends, R is the return of the underlying index, g is the leverage factor (greater than one), rf is the annual overnight interest rate and T is the number of calendar days between calculation days.
Specific index variants and areas of application
Regional and sectoral characteristics
The MSCI Leveraged Index family comprises various regional and sectoral variants. The MSCI World Leveraged 2X Daily Net Index aims to provide double leveraged exposure to the MSCI World Index. Current performance data shows considerable volatility: while the index has achieved an annualized return of 28.32% over five years, it also has a standard deviation of 30.99%.
The MSCI USA Leveraged 2X Daily Index, which is tracked by the popular Amundi ETF Leveraged MSCI USA Daily UCITS ETF, tracks the double-leveraged performance of the MSCI USA Index on a daily basis. This index comprises around 600 leading US equities and has established itself as one of the best-known leveraged indices. Emerging markets are covered by the MSCI Emerging Markets Leveraged 2X Daily Index, which tracks the leveraged performance of emerging market equities worldwide.
Technical implementation and interest rates
The indices are calculated daily using current benchmark interest rates. Since August 2021 MSCI uses modernized reference rates: SOFR for USD, SONIA for GBP, SARON for CHF, TONA for JPY and ESTR for EUR. This transition away from LIBOR rates reflects the global reforms of benchmark interest rates and ensures an up-to-date index calculation.
Performance characteristics and special features
Daily rebalancing and path dependency
A characteristic feature of the MSCI Leveraged Indexes is the daily rebalancing, which means that the leverage factor is readjusted daily. This characteristic leads to a so-called path dependency: the overall performance over longer periods can deviate considerably from the simple multiplication of the underlying index performance by the leverage factor.
Mathematically, this is shown by the volatility drag effect: in fluctuating markets, a double-leveraged index can record losses even if the underlying index remains constant. A practical example illustrates this: if an index falls by 10% and rises by 11.11% the next day (back to the original value), the leveraged index still shows a loss of 2.22%.
Current market performance
The most recent performance data of the MSCI Leveraged Indexes show the characteristic volatility of these instruments. The MSCI World Leveraged 2X Daily recorded a year-to-date (as of May 2025) performance of 7.09%, while the MSCI USA Leveraged 2X Daily shows -2.02%. These figures underline the short-term fluctuations to which leveraged indices are subject.
Over longer periods, the results are impressive, but also risky: the MSCI World Leveraged 2X Daily achieved an annualized return of 14.87% over ten years with a standard deviation of 29.37%. This high volatility illustrates both the return potential and the considerable risks of leveraged indices.
Practical application and investment products
ETF implementations
Various asset managers offer ETFs on MSCI leveraged indices. The Amundi ETF Leveraged MSCI USA Daily UCITS ETF (ISIN: FR0010755611) is the best-known representative and is colloquially referred to as the "Holy Amumbo". With a fund volume of 887 million euros and a total expense ratio of 0.50% p.a., it is one of the most accessible ways to invest in leveraged US equity strategies.
The Lyxor MSCI Emerging Markets Daily (2x) Leverage UCITS ETF provides investors with double leveraged exposure to emerging markets, but has a much smaller fund size of €23 million. Most of these ETFs use synthetic replication through swaps to efficiently implement the complex leverage structure.
Target group and investment horizon
MSCI Leveraged Indexes are primarily aimed at experienced investors who understand the concept of daily leverage. Daily rebalancing makes these instruments particularly suitable for short-term trading strategies, while they can be problematic for long-term buy-and-hold strategies due to the volatility drag effect.
Financial experts recommend leveraged indices mainly for tactical allocations or as a speculative instrument for investors who want to profit from strong market movements in the short term. The high volatility and risk of significant losses make them unsuitable for conservative or inexperienced investors.
Conclusion
MSCI Leveraged Indexes track the daily returns of leveraged investment strategies by multiplying the performance of underlying MSCI indices by a fixed leverage factor. These complex financial instruments take into account capital gains, dividends and financing costs and offer both exceptional return opportunities and significant downside risk. Their daily rebalancing makes them particularly suitable for short-term strategies, while long-term investors should carefully consider the implications of path dependency. With different regional variants and ETF implementations, they are important building blocks for tactical portfolio strategies of experienced investors.

That said:
The only thing that can be said about these ETFs is that their historical performance over 5 years can say NOTHING reliable about their future.

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