Many investors may be looking for ways to protect their portfolios, and reverse leveraged funds can allow investors to hedge their portfolios at the lowest cost to avoid systemic risks.
Maybe 2022 is the year of the reverse ETF?
I have some risk tips:
Leverage and reverse ETF refer to the rise and fall of relevant indexes in a single day, rather than the cumulative decline and rise over a period of time. This feature is more suitable for short-term trend judgment and hedging and hedging investment strategies, but may not be suitable for long-term investors.
When investors have a clear judgment on the market trend or need to reduce risk exposure, they can implement the investment strategy through leveraged ETF and reverse ETF. However, for investors aiming at long-term holding, the use of leveraged ETF and reverse ETF may not be suitable.
In addition, in the case of market fluctuations, leverage will amplify the risk of loss; Of course, on the contrary, when there is a unilateral market, leverage can also enlarge profits. If you want to trade reverse and leveraged ETFs, you must first recognize the risks!