What You Need to Know About ULBR
The first thing any investor needs to take note of is that ULBR is not an ETF but an exchanged-traded note, meaning investors would have credit risk associated with CitiBank. It’s important that buyers know the difference, as structure matters. ULBR is a more complex investment approach involving Libor, shorting of eurodollar futures and the use of leverage. ULBR is not for the “set it and forget it” investor, as the effects of contango could derail long-term performance. After looking under the hood, any investor chasing returns may have found their answer, as ULBR has been portfolio rocket fuel in 2018.
Where ULBR Fits in Your Portfolio
As previously mentioned, ULBR is not for beginners, but can and has served investors well this year as an alpha booster. For those looking to deploy ULBR, it will be on the edges of their portfolio rather than a core holding. This hidden gem must be handled with caution, as it has moving parts and leverage, but with strong 1-month and 3-month returns, investors can be tactical with ULBR and see strong returns.