Understanding the GraniteShares 2X Long Uber Daily ETF (UBRL)

What this ETF is trying to do

The GraniteShares 2X Long Uber Daily ETF (UBRL) is a leveraged ETF. This means it is designed to seek twice the daily performance of Uber stock. Because it uses leverage, the price can move much faster than the actual stock price of Uber.

What the numbers show

The data shows a significant decline in the ETF's share price over the last year.

• Current Price: $13.09

• Estimated price from roughly one year ago: $35.21

• One-year price return: Approximately -62.82%

• Year-to-date (YTD) price return: Approximately -38.31%

It is important to understand the difference between price return and total return. The price return only tracks how much the share price changed. The total return includes both the price change and any cash distributions paid out to investors. For the one-year period, the total return was approximately -58.93%, which is different from the price-only return of -62.82%.

Income and distribution explanation

UBRL has a high distribution yield of approximately 16.93%. This number represents the cash distributions relative to the current ETF price. However, a high yield does not mean an investor earned that percentage as a total return.

The distributions for this ETF are described as "irregular" or "less frequent." In the last 12 months, there was only one distribution recorded. When looking at income, it is important to remember that receiving cash distributions does not guarantee that the value of your original investment will stay the same.

NAV erosion explanation

This ETF has a severe erosion-risk flag active. The data shows an erosion score of 10, which is labeled as "Severe price erosion." This indicates that the market price of the shares has dropped significantly.

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. While we can see the share price has declined sharply, we cannot use this price data alone to prove whether the Net Asset Value (NAV) itself has eroded.

Pros

• The ETF offers a high distribution yield of approximately 16.93%.

Cons

• Significant Price Decline: The share price has dropped by approximately 62.82% over the last year.

• High Risk: The ETF is leveraged, which can lead to rapid price changes.

• Severe Erosion Risk: The fund has triggered a severe erosion-risk flag due to its price trend and erosion score.

• Inconsistent Income: Distributions are irregular rather than being paid on a steady, predictable schedule.

Beginner takeaway

UBRL is a high-risk, leveraged fund. While it offers a high distribution yield, the share price has experienced a major decline over the past year. Investors should be aware that high yields can exist even when the share price is falling, and a "severe erosion-risk flag" means the price has shown significant deterioration.