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.
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
- 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.