Anmerkungen:
In: Financial Analysts Journal (forthcoming)
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 10, 2020 erstellt
Beschreibung:
Levered and inverse ETPs are designed to provide geared long and short exposures to thedaily returns of different benchmark indexes. The benchmarks can be any reference index.The popular ones are on stocks, bonds, commodities and volatility. The problem with theseproducts is that they are not generally well-understood, particularly those whosebenchmarks are futures-based indexes. They are neither suitable buy-and-hold investmentsnor effective hedging tools. They are unstable and exist only as a mechanism for placingshort-term directional bets. Levered and inverse products are not, and cannot be, effectiveinvestment management tools