As a levered product, UWTI is not a buy-and-hold ETF; it’s a short-term tactical instrument. Like many levered funds, it delivers 3x exposure only for 1 day. Over longer periods, returns can vary significantly from 3x exposure to its underlying index. UWTI targets a very specific slice of the energy market: It’s only linked to returns on WTI crude oil futures. As an ETN, UWTI is subject to counterparty risk; in this case, original investor capital plus any return earned on UOIL is subject to Credit Suisse’s ability to pay that obligation. UWTI’s expense ratio is high but, as a short-term product, yearly fees are relatively less important than trading costs. Unfortunately, UWTI’s relative lack of liquidity produces wide spreads that increase the cost associated with using this product. UWTI also carries an elevated risk of closure—assets are tiny—but, again, as a short-term product, closure risk is a lesser concern. Investors can find better liquidity in competing fund UCO—which is only 2x rather than 3x and includes WTI and Brent exposure.