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FSC reminded investors to pay attention to the investment risks of leveraged/ inverse ETF and VIX futures ETF and that they are not suitable for long-term holding

2018-09-07
 
The FSC issued a press release on July 26, 2018, reminding investors that leveraged/inverse ETF are different from traditional ETF that invests in shares and bonds and other securities. Instead, they are short-term strategic products that are not suited to long-term holding by investors. In particular, although inverse ETF is an investment tool that can avoid the risk of market fall, investors should not mistakenly think that inverse ETF is suited to long-term holding merely considering the fact that the daily NAV performing of inverse ETF is in the opposite direction to the underlying index return performance. 
Also, in addition to ordinary securities ETF investing in shares or bonds, futures ETF has a wider scope of tracking subjects; the FSC specially reminds investors to fully understand the characteristics and risks of individual futures ETF before investing, and to consider the degree of volatility of the futures contract of the tracking subjects, cross-border time differences, futures contango and other factors that may have a certain effect on futures ETF investment return.
 
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  • Update: 2018-09-07
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