Compounding

Short and leveraged ETPs provide a daily leveraged return. This means that if the ETP is held for more than one day the returns will be compounded. This means that the actual returns over periods longer than one day could be different than expected.

Leverage

Investors should note that leverage amplifies returns and losses

What type of investors are suited to leveraged ETPs

• Investors who are sophisticated and active
• Investors who understand more complex investment products
• Investors who have read and understood the investment returns around daily compounding ETPs
• Investors who have the time to monitor their investments on a regular basis

Investors should seek professional advice prior to trading leveraged ETPs and also ensure they read the prospectus thoroughly.