LeagueShares Files Leveraged and Non-Leveraged ETFs Tied to MLB Teams

LeagueShares has filed for a sweeping lineup of ETFs offering both standard and leveraged exposure to the performance of every MLB team. The non-leveraged funds would primarily invest through futures tied to team-specific FutureSports Performance Indexes, while the leveraged versions target up to 2x the daily return of their respective indexes and are designed as short-term trading vehicles. Each index begins the season at 7,500 and moves based on 70 measures—28 game-level statistics and 42 milestones—covering hits, home runs, runs, strikeouts, fielding results, wins and other achievements. Postseason game statistics and end-of-game milestones receive a 1.5x adjustment, while the World Series winner’s 750-point bonus increases to 1,125 after that adjustment. The indexes reset annually 32 days after the World Series and can move into negative territory. The funds would invest significantly in futures and may also use swaps, options and other derivatives, with futures potentially experiencing their largest moves during or immediately after MLB games. Because the leveraged funds reset exposure daily, compounding and volatility can cause longer-term returns to differ substantially from 2x the underlying index. LeagueShares also notes the funds could potentially be used by businesses such as hospitality, retail, ticketing and media companies to hedge financial exposure associated with a team’s competitive performance, although such hedges may be imperfect.