Because leveraged ETFs use financial derivatives to give you 3x or 2x leverage to the underlying, they don't always fully track the index -- the return of leveraged funds for periods longer than a single day will be the result of its return for each day compounded over the period. What this means that, in general, in a rising market, a 3x leveraged instrument would likely deliver more than 3x returns, but in a sideways or falling market, a 3x leveraged instrument would underperform its underlying by more than 3x. For example, if the S&P goes up 5% over a week, a 3x ETF might not go up exactly 15%. This is especially important in high-volatility markets, where leveraged ETFs may underperform their expected returns due to the compounding effects detailed earlier. In a very general sense, the reason for this is that tracking restarts at the start of each trading day -- 3x ETF performance is based on the daily move of its underlying 1x, and not on the 3x ETF's share value itself. Additionally, volatility is tracked by market participants -- if the VIX goes up, the ETN goes up because market participants are buying, rather than an underlying asset rising in value. This strategy invests in fractional shares when available. When not available, it will invest in the nearest (lower) whole number of shares. Please note that this number may be 0 if your investment in this strategy is sufficiently low, meaning our investment strategy advertised returns will be different from your returns.