Short and leveraged ETFs
Exchange Traded Funds (ETFs) aim to track a sector, market or index. In general they trade like shares in that they are bought and sold on recognised investment exchanges; however unlike individual shares they offer wider exposure to a particular asset class or index. Short and Leveraged ETFs use complex financial techniques to increase the potential return of their investment.
Short ETFs aim to deliver inverse performance to an underlying index through the use of derivatives and short selling techniques.
Leveraged ETFs amplify gains and losses relative to the underlying index.
ETF Securities is one of the world’s leading exchange-traded product (ETP) providers and a pioneer in commodity ETPs. Their work in this asset class is complemented by a range of other investment solutions including currency and thematic equity ETPs.
Short and leveraged ETFs are complex financial instruments that carry significant risks. They are generally designed for day traders and not suitable for investors who plan to hold them for more than one trading session. They are only suitable for experienced short-term investors who fully understand and accept these risks. These types of ETF can exaggerate market movements and can be extremely volatile. There is a risk that you could lose all or some of your money. Before investing in these instruments you should read the individual prospectus carefully.
If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial adviser.