T-Rex Group Files for a Leveraged MicroStrategy ETF

The financial services firm T-Rex Group has recently applied to establish a leveraged Exchange-Traded Fund (ETF) based on the stock of MicroStrategy in the US.

This ETF has been described by one expert as a highly volatile investment, comparable to a “ghost pepper.” If the ETF is approved, it will expose investors to about twenty times the usual level of volatility seen in the S&P 500 index.

Senior Bloomberg ETF analyst Eric Balchunas stated in a recent post that this ETF could potentially be one of the most volatile seen in the US, dubbing it the “ghost pepper of ETF hot sauce.”

Balchunas cited the current volatility of a similarly-leveraged MicroStrategy ETF on the European market, noting that it makes popular index fund QQQ (which tracks the top 100 publicly traded companies in the US) look like a low-risk investment.