What is a reverse ETF fund?
Reverse ETF, also known as "bear market ETF" or "short selling ETF", is a bearish ETF built by fund management companies using futures, options, swaps and other financial derivatives, with the goal of making profits when the market falls. The common leverage ratio is 2: 1 or 3: 1. If the value fluctuation of ETF fund is more than twice that of the underlying index (excluding twice), we call it leveraged and reverse trading index fund.
The reverse ETF usually pursues that the investment result of the fund on each trading day reaches a certain reverse 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 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.
What ETF funds are there?
Southeast English Shanghai and Shenzhen. As well as the first batch of China A-share leverage products, namely, the daily leverage (2x) product of Southern Dongying CSI 300 Index and the daily reversal (-1x) product of Southern Dongying CSI 300 Index, were listed on the Hong Kong Stock Exchange on July 27th, and the product approval date was July 22nd. Huaxia Xiang Fund (Hong Kong) Co., Ltd. also released the daily reverse (-1x) product of Huaxia Dirichsen Shanghai and Shenzhen 300 Index and the daily leverage (2x) product of Huaxia Dirichsen Shanghai and Shenzhen 300 Index, and the approval date was July 24th.
The above is what Bian Xiao shared, and the content of reverse ETF fund is also shared here. The operating mechanism of reverse funds is complicated, so it is best for everyone to fully understand the risks before investing.