PATX delivers 2x daily leverage on UiPath (PATH), the enterprise automation software company. This single-stock leveraged ETF is designed for traders betting on short-term moves in UiPath's volatile stock price.
How It Works
The fund uses total return swaps to achieve 200% exposure to PATH's daily price movements, resetting each day. Unlike diversified tech ETFs, this concentrates all leverage on one automation software company. Daily rebalancing means the fund buys more exposure when PATH rises and sells when it falls, creating path dependency that can erode returns over multiple days.
Key Features
- Pure-play 2x leverage on enterprise automation leader UiPath
- Zero expense ratio makes it cheaper than margin trading
- Intraday liquidity for momentum trades around earnings or news
Risks
- Single-stock concentration means a 20% PATH drop = 40% fund loss in one day
- Daily compounding can destroy value — a 10% drop then 11% rise leaves you down 2.2%
- UiPath's 50%+ historical volatility amplified 2x creates massive swings
Who Should Own This
Day traders with strong conviction on UiPath's near-term direction who understand leveraged ETF mechanics. This is a surgical tool for expressing bullish views around catalysts like earnings or product launches — not a buy-and-hold investment. Maximum holding period: 1-3 days.