ETF index funds have become the new favorite of investment, and new types of ETFs are constantly introduced, including double or triple leverage, and bullish and bearish types, allowing investors to flexibly grasp the long and short trends and grasp the best investment opportunities with small and broad.
ETF products have different distribution forms after joining financial engineering technology. The United States has introduced leveraged ETF and short ETF, the former has double or even triple the investment effect, and the latter provides investors with another choice besides the long-term operation method.
These new ETFs are especially favored by investors. In various markets, investors can make profits by using ETFs. In fact, according to the data provided by Morningstar, an investment research company, from 1 month to the beginning of May this year, the return rate of B2BInternetHOLDRs (BHH) was 56.52%, and the return rate of Ultra QQ Pro Shares (QLD) was 27.56%, both of which stood out.
The portfolio management of leveraged ETF also needs to track and maintain the reconfiguration of the fund's portfolio securities and derivative financial instruments according to the daily fluctuations of the market, so as to ensure that the fund can track the multiple of the target index to the maximum extent. Compared with stock index futures, margin financing and securities lending, the investment entry threshold of leveraged ETF is lower in terms of capital threshold and professional requirements; Compared with stock index futures tools, there is no position limit, no need to pay margin, no need to manage margin, and the operational risk is lower. The launch of leveraged ETF provides an efficient and convenient leveraged investment tool for trading investors who pursue leveraged investment, investors and arbitrageurs who are inconvenient to use stock index futures or margin trading, and also pushes the development of ETF products in China to the highest point in the industry.
The biggest advantage of leveraged ETF funds is that investors can amplify the leverage of funds and improve the efficiency of the use of funds without financing from securities firms. But at the same time, we should also see that leveraged ETF funds are high-risk investment tools, which can make people go to heaven and hell. In the past year, the best and worst performing ETF funds were almost all leveraged ETF funds.
The biggest highlight of leveraged ETF is its leverage compared with traditional ETF. Generally speaking, according to the tracking target of ETF, leveraged ETF can be divided into broad-based index (stock, bond, currency), style index, industry index, commodity index or other leveraged index series; According to the size of the lever, it can be divided into 1 times, 1.5 times, 2 times ... n times; According to the direction of the lever, there are positive and negative points. It is reported that the first batch of leveraged ETFs authorized by E Fund is the most representative Shanghai and Shenzhen 300 Index in China, and the leverage size and direction may be-1 times, +2 times and -2 times. The launch of its leveraged ETF series products will seize the opportunity in the industry, open up half the sky in alternative products, and consolidate and enhance the market position of its tool products. (1) Investment target
Leveraged ETF usually pursues that the investment result of the fund reaches a positive multiple of the daily price performance of the target index before deducting expenses, such as 1.5 times, 2 times or even 3 times, but it usually does not pursue more than one trading day to achieve the above goal. This means that the return on investment in more than one trading day will be the comprehensive result of the return on investment in each trading day, which is different from the return on the target index in the same period.
(2) Investment object
Leveraged ETF mainly invests in target index portfolio securities and financial derivatives, while other assets are usually invested in fixed-income products such as government bonds and bonds with high credit rating and high liquidity. Taking ProShares series as an example, the securities and financial instruments that leveraged ETFs can invest in are: stock securities, including common stocks, preferred stocks, depositary receipts, convertible bonds and warrants; Financial derivatives, including futures contracts, futures options, swap contracts, forward contracts, securities and stock index options; Treasury bonds, bonds and money market instruments; Margin trading, repurchase, etc.
(3) Investment strategy
In order to achieve the investment goal, fund managers usually use quantitative methods to invest to determine the type, quantity and composition of investment positions. Fund managers are not influenced by their own views on market trends and securities prices when investing. Regardless of market trends and trends, they always maintain full investment and do not hold defensive positions when the market falls.