TNA: Tariff Policy May Overshadow Rate Policy For Small-Caps

  • TNA offers 3x daily exposure to the Russell 2000, making it suitable for active traders but not for long-term investors. Small-cap stocks may struggle in an inflationary environment, even if interest rates decline, due to higher import costs and tighter margins resulting from tariff policy. Holding TNA beyond a single day exposes investors to compounding risks and value decay, especially during consecutive down days.