LETF Financing Drag Explorer
Decomposed financing drag across all long single-stock leveraged ETFs. LETFs obtain leverage through total-return swaps whose financing premium is not disclosed — in many single-stock and crypto LETFs, it exceeds the expense ratio by 20–40×. Browse premiums by ticker, asset class, and AUM.
Methodology
- Each day, an LETF should return L × underlying move minus financing and expenses
- The gap between expected and actual return is the total daily cost
- Subtracting risk-free borrowing cost (13-week T-bill) and stated expense ratio yields the financing premium s
- Financing drag = (L−1) × (rf + s) + ER, where (L−1) is dollars borrowed per dollar of equity
Assumptions
- 109 US-listed long leveraged ETFs with ≥ 6 months history, data through Dec 2025
- Productive band: range of L where ΔR(L) = R(L) − R(1) > 0
- Zero-cost benchmark: L× daily returns compounded with no financing drag