Leveraged & Inverse ETF
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A tool to amplify returns without financing, and stay in the green when market turns south

A tool to amplify returns without financing, and stay in the green when market turns south
2 new strategies will soon be introduced on the Main Market of Bursa Malaysia; leveraged, and inverse strategies. The strategies will provide an avenue to investors to either double the investment exposure into an index through a 2x Leveraged ETF, or gain the reverse (inverse) performance of the index through an Inverse ETF.

Double your investment exposure with Leveraged ETF

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Leveraged exchange-traded funds provide you with the ability to multiply your market exposure without having to put in additional capital or apply for financing with your broker.

Gain the reverse performance with Inverse ETF

Inverse exchange-traded funds provide you with the option to go against markets.

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How Leveraged ETF and Inverse ETF work?

Leveraged ETFs amplify your investment results, meaning returns on your investment would be multiplied, both on the upside and on the downside. For example, whilst your investment returns could be doubled to provide you a 4% gain when the underlying index is up by 2%, the results are the same in the reverse. I.e. if the underlying index records a loss of 2%, your investment return would be a loss of 4%.

 

Conversely, as the Inverse ETF provides the reverse results of the index, your investment returns would be positive if the underlying index performs negatively. Do note that in a reversed scenario where the underlying index performs positively, your investment returns would then be negative.

ETF Performances in upward and downward trends

 
Underlying Index, 2x Leveraged ETF vs (-1x) Inverse ETF

Trading in ETF vs Futures

You may then ask what the difference is between trading the futures yourself. Trading a Leveraged, and Inverse ETF provides you with the exposure without the hassle of monitoring your exposure.

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Did you know that there are expiration dates to the futures that you buy into? There may be negative impact on your portfolio if the futures are not rolled-over within the stipulated timeframe. Through an ETF, monitoring of these activities will be done by a Fund Manager, thus there will be no headache of managing timelines from an investors' perspective.

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Further to that, each futures contract usually comes in multiples of 50 of the index point, which means you will be committing to a relatively high investment amount although using margins, you need not pay the full sum to invest.

Things you need to know before you invest

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The listing of these ETFs is slated to take place in November 2019. Check Bursa Malaysia for the latest development.

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The introduction of these new strategies will be made using a wide range of underlying index, which will consist of both domestic, as well as foreign indices.

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Given that these strategies are considered more sophisticated than your average stocks, and conventional ETFs, you would be required to carry out a checklist declaration through your broker to setup your account and have your account operationally ready for trading.

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Speak to your brokers to find out more on how you can start trading Leveraged & Inverse ETFs.

Whatever your take on the market is, we’ve got a trading tool for you.
Are you ready?

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  2 people like this.
 
miketyu where can i get more info
25/11/2019 5:08 PM
Maguduro I think your brokers should be able to help.
25/11/2019 5:13 PM
makubex718 the criteria to buy tough...think broker firms buy procedure also tough...like not encouraging people buy also...i wonder why push products like that
29/11/2019 4:14 PM
Alex™ buy buy buy!
02/12/2019 10:59 AM
Alex™ when can hoot sp500?
02/12/2019 11:00 AM
paperplane ETF also LEverage liao
03/12/2019 9:01 AM
duitKWSPkita Finally this tools arrive in Malaysia market
04/12/2019 9:18 PM
Blue Tulip I wonder will the buying and selling be available via online platform?
04/12/2019 9:43 PM
Alex™ pay how much ah to feature a blog? i also want.....but i3 admin no reply my email =(
05/12/2019 11:16 AM
confuse4_4_4 You says "In this example, the index increases 10% daily, so the 2x Leveraged ETF will gain 20% daily. As the ETF takes profit every day, the 20% gain is compounded daily. See illustration below for better understanding."


How about the index decrease 10%? the 2x Leveraged ETF will drop 20% or more than 20%? does it impose any interest charges?
05/12/2019 5:45 PM
confuse4_4_4 who can show me what ETF available here? can i short nasdaq? or HSI? i want 10 x leveraged
05/12/2019 5:47 PM
gorenggoreng88 let's buy 5G ETF or FANG ETF... JOM!
05/12/2019 9:59 PM
thanaraj When analising the performance of a stock, I use the dividend DY paid. An analyst said must use both the dividend and the other financial ratio like ROE of the stock.Can some one explain how you compute the ROE.Please send yr answer by my email: jesdav36@gmail.com.
16/12/2019 10:48 PM
Alex™ 2019 ending soon. Wish bossku happy Christmas and merry new year 2020. HUAT ARRRRRR
22/12/2019 9:04 AM
TradeplusETF Go ahead and read up on the 4 Leveraged & Inverse ETFs that we have on www.tradeplus.com.my:
1. TradePlus NYSE FANG+ Daily (2x) Leveraged Tracker (0830EA)
2. TradePlus NYSE FANG+ Daily (-1x) Inverse Tracker (0831EA)
3. TradePlus HSCEI Daily (2x) Leveraged Tracker (0832EA)
4. TradePlus HSCEI Daily (-1x) Inverse Tracker (0833EA)
08/01/2020 11:08 AM
thanaraj As an ardent Nestle share investor, I am still uncertain how to compute the ROE of Nestle share. I call upon retail investors and Research houses to help me and give advice how to compute ROE of Nestle share.Regards.
10/01/2020 4:58 PM
Kean Leong Wong It is very sad to know this product exist as we are a retail investor can only see and learn and we cannot buy. BURSA MALAYSIA should go back to study the rules to comply before having such a publicity in all news and presses. FYI, this two ETF only for individual with RM3m in asset. And before you are eligible to buy, you have to declare that you are eligible, otherwise you cannot buy. SO, the big question to BURSA is , why do you have such a good product and you intend to use this product to generate more activity and yet you do not allow retailer to buy?....BURSA, are you telling all people in the world that theis ETF is higher risk than all call warrants listed in BURSA?..why retalers allow to buy call warrants and not ETF?...are you telling all people in the world that KLCI as index can drop to zero, and high risk so you care doing good job to protect investors? Rememeber, all call warrants can become worthless, why dont you protect them?

The more laugh is investor here can buy HONG KONG A50 ETF, and cannot buy bursa etf, what a joke , BURSA!!
28/01/2020 5:13 PM
Kean Leong Wong An individual whose total net personal assets, or total net joint assets with his or her spouse, exceeds RM3 million or its equivalent in foreign currencies, excluding the value of the individual’s primary residence• An individual who has a gross annual income exceeding RM300,000 or its equivalent in foreign currencies per annum in the preceding 12 months•
28/01/2020 5:17 PM
Kean Leong Wong i was bebeing reject to buy....can this be applicable to all broking houses?
28/01/2020 5:17 PM
Kean Leong Wong what i refer to is KLCIX1 AND KLCIX2 LATEST LISTING BY KENANGA
28/01/2020 5:21 PM
Clear1691 WHERE TO GET
30/01/2020 11:24 AM
ahgoo Leveraged ETFs are VERY volatile instruments! 1) What goes up X, often plummets more than -X, 2) These ETFs are often disguised as ETNs, regardless, they do have 'tracking' errors, i.e. you don't always get X, you get nX, where n is < 0 3) Even in the US, there is a move to delist these, while I am NOT familiar with BURSA rules, these leveraged assets are short term trading instruments used by professional traders and institutional investors, so having sufficient assets, make sense to me
05/02/2020 5:23 AM