While investors were distracted by the drama unfolding on Capitol Hill, a small exchange traded note has quietly generated huge returns.
The ELEMENTS Linked to Spectrum Large Cap U.S. Sector Momentum Index (NYSEArca: EEH) was up over 45% Wednesday. EEH surged 205.3% over the past month
The ETN is still quite small, with a market cap of $3.9 million according to issuer data, trading with an average daily volume of 939 shares.
Given its spike in popularity, the EEH was trading at a 309% premium to its net asset value, according to Morningstar.
The fund tracks the SPECTRUM Large Cap U.S. Sector Momentum Index, which is based on the relative weights of the sub-indices within the S&P 500 Index and follows a momentum strategy. Accordingly, the index overweights sub-indices that outperform the S&P 500 while under-weighting under-performing sub-indices.
“The Index is designed to take advantage of the disparate performance of the sub-indices relative to each other and the SPTR,” according to the prospectus.