Exposure
What market or basket the fund is designed to track.
Five-minute primer
Understand the machine before you judge the signal.
Start here if CAGR, drawdown, daily-reset leverage or execution lag are not yet comfortable concepts. Plain language comes first; expert detail stays available when you want it.
Education only · no product recommendation
01 · ETF basics
An ETF is a wrapper, not a promise
An exchange-traded fund holds or tracks a defined basket or index and trades on an exchange. Its price can fall, tracking can differ from the target and fees, taxes, liquidity and product structure matter. Zeus provides information about a rules-based model; it does not own the ETF for you or place a trade.
Structure
How the product obtains that exposure and what it costs.
Implementation
What is actually available and suitable in your account and jurisdiction.
02 · Leverage
“3×” describes a daily target
A daily-reset leveraged ETF seeks a multiple of one day's index move before fees and frictions. Over several days, compounding means the result depends on the path—not just the starting and ending index level. Large losses, volatility drag and total loss are possible.
Simple path example
If an index falls 10% and then rises 11.1%, it roughly returns to its starting level. A daily-reset leveraged product magnifies each separate daily move; the two compounded leveraged moves do not simply cancel. Real products also have fees, financing and tracking differences.
03 · Drawdown
A loss and its recovery are not symmetrical
Drawdown measures a fall from a previous peak. The deeper it becomes, the larger the percentage gain needed to return to that peak.
| Loss from peak | Capital left | Gain needed to recover |
|---|---|---|
| −10% | 90% | +11.1% |
| −20% | 80% | +25.0% |
| −30% | 70% | +42.9% |
| −50% | 50% | +100.0% |
| −60% | 40% | +150.0% |
| −80% | 20% | +400.0% |
04 · Timing
Execution delay is not publication delay
Step 1
Signal computed
The research process evaluates inputs after the US close.
Step 2
Delay-0 / Delay-1
Backtest cases model next-open execution, with Delay-1 adding one trading session.
Step 3
Public +14 days
A separate calendar-day embargo controls when a forward journal observation can be released.
05 · Europe context
Availability is not the same as suitability
In Europe, access to a particular ETF can depend on jurisdiction, broker, investor classification and required product documentation. Zeus does not suggest workaround products or substitutes. Check the instrument documentation and your own legal, tax and suitability position.
For the regulatory background, see the European Commission overview of PRIIPs key information documents. Product access remains a broker- and jurisdiction-specific question.
Glossary: CAGR, max drawdown, Calmar and benchmark
- CAGR
- The smoothed annual growth rate between the start and end. It hides the path taken.
- Max drawdown
- The largest peak-to-trough decline measured in the series.
- Calmar
- CAGR divided by the absolute max drawdown. Useful context, not a complete risk measure.
- Benchmark
- A comparison series measured over the same dates and assumptions where applicable.