It can be regarded as a leverage index tool, which can achieve the purpose of financing by paying the agreed rate of return to the A share of the graded fund and get the opportunity to track the leverage income of the index. Share A lends money to share B and only enjoys interest, so share B has leverage.

Class b lever floats in real time.

Net leverage = initial leverage × net value of parent fund

Class b net value;

Price leverage = initial leverage × parent fund net value b transaction price.

Since Grade B can only be bought and sold in the secondary market, what we can really use is price leverage.

The popular explanation of graded funds is to invest the assets of A share and B share as a whole, in which the holder of B share pays the agreed interest to the holder of A share every year, and the overall investment profit and loss after paying the interest is borne by B share. Take a graded fund product X(X is called parent fund) as an example, which is divided into A share (agreed income share) and B share (leveraged share). Share A agrees on a certain rate of return, and the remaining assets of fund X after deducting the principal and accrued income of share A are all classified as share B, and the losses are borne by the holders of share B within the limit of the net asset value of share B. When the overall net asset value of the parent fund falls, the net asset value of share B falls first; Accordingly, when the overall net value of the parent fund rises, the net value of the B share will appreciate faster after providing the A share income. Share B usually gains certain leverage by participating in the distribution of residual income or taking losses to a greater extent, which has a more complicated internal capital structure and its nonlinear income characteristics make it imply options.