Four fund managers to launch first batch of leveraged and inverse exchange-traded funds on March 14
Mainland’s CSOP Asset Management and China Asset Management, and South Korea’s Mirae Asset Global Investments and Samsung Asset Management will each list four ETFs
Four fund managers are to launch Hong Kong’s first-ever batch of leveraged and inverse (L&I) exchange-traded funds that will track the city’s Hang Seng Index (HSI) and H-share Index, allowing short-term investors to ride upside trends for double gains, or hedge against uncertainty ahead of any so called, expected “black-swan” events.
The mainland’s CSOP Asset Management and China Asset Management, and South Korea’s Mirae Asset Global Investments and Samsung Asset Management will each list four ETFs on March 14: a twice-leveraged ETF for the HSI, an inverse ETF for HSI, a twice-leveraged ETF for the H-shares Index, and an inverse ETF for H-share Index
ETFs are funds traded at the exchange like stocks, which passively track an index or a commodity.
An inverse ETF effectively delivers the opposite of a daily return of an index, while two-time leveraged ETFs double the return when benchmarks surge.
Hong Kong regulator, the Securities and Futures Commission (SFC), gave the green light to fund managers applying to launch L&I products that track local equity indices in January, six months after the city was offered its first batch of L&I ETFs that track non-Hong Kong, non-mainland foreign equity benchmarks or commodities.