As outlined in our
prospectus, the investment objective of each of the HBP Funds & ETFs is to track two times the daily or inverse daily performance
of their respective benchmarks. In order to provide NON recourse leveraged exposure and achieve this investment objective the funds are rebalanced daily.
This process results in the funds being rebalanced at the close of each trading day so that the market exposure for the next day is only two times the then current assets of the fund. If a fund has
positive performance on a given day this will result in the market exposure being increased and vice versa. Thus, also resulting in compounding.
If an investor would like to minimize the
effects of compounding and have their investment track more closely to 2x/-2x the PERIOD return of the underlying benchmark the
investor should rebalance their holdings. More frequent rebalancing will result in period investment returns more closely matching 2x/-2x the benchmark.
The following tools
calculate the approximate amount of additional (or reduced) investment
required in order for the investor to maintain the equivalent investment ratio as the inception of their investment. Input the required information into the yellow cells only. The
rebalancing calculator will determine the necessary rebalance amount required.
Disclaimer: This analysis is for illustration purposes only. Mutual Funds are not guaranteed, their
values change frequently and past performance may not be repeated. Please read the prospectus before investing.
