ETF Report: LEVERAGE SHARES 2X LONG XYZ DAILY ETF (XYZG)

The LEVERAGE SHARES 2X LONG XYZ DAILY ETF (XYZG) is a leveraged ETF designed to provide double the daily return of its target index. As of October 5, 2026, the fund is characterized by a significant decline in share price over the last year and a severe erosion-risk flag.

What this ETF is trying to do

XYZG is a leveraged fund. This means it uses financial tools to try and multiply the daily movement of its underlying asset. Specifically, it aims for "2X Long" performance, meaning if the target asset goes up 1% in a day, the ETF aims to go up 2%. Because it is a daily tool, it is generally used for short-term trading rather than long-term investing.

What the numbers show

The current price of XYZG is $15.32. Looking at the performance data:

• Year-to-Date (YTD): The price return is 3.96%.

• One-Year Price Return: The share price has fallen by 35.78%.

• One-Year Total Return: When including distributions, the total return is -31.55%.

For a price-only example, if an investor had put $10,000 into the fund roughly one year ago (when the estimated price was $23.85), the value of those shares based on price alone would be approximately $6,422 today.

Income and distribution explanation

XYZG has a distribution yield of 6.44%. Over the last 12 months, it has made only one payment totaling $0.99 per share. The distribution frequency is listed as irregular or less frequent.

It is important for beginners to remember that a high distribution yield can be misleading. In this case, the one-year total return (-31.55%) is still deeply negative, meaning the cash distributions did not offset the large drop in share price.

NAV erosion explanation

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.

However, the price-based evidence is significant. The fund has a severe erosion-risk flag and an erosion score of 30, which is labeled as "Significant price erosion." This means the split-adjusted price trend and the erosion score have triggered a warning about the decline in the fund's market price.

Pros

• Leverage: Provides a way to get double the daily exposure to the target asset.

• Recent Gain: The fund has seen a small positive price return (3.96%) so far this year.

Cons

• High Price Decline: The fund lost over 35% of its share price over the last year.

• Poor Income Grade: It has an income rating grade of "F."

• Irregular Payments: Distributions are not consistent or frequent.

Beginner takeaway

XYZG is a high-risk, leveraged tool. While it offers a 6.44% distribution yield, the share price has dropped significantly over the past year. This shows that receiving cash distributions does not guarantee that your original investment (the principal) is safe. This ETF is designed for daily movements, not for long-term stability.

Top Holdings (as of Oct 7, 2026):

• FIRST AMERICAN TREASURY OBLIGS X (FXFXX): 26.54%