Mutual funds that are 3 times the inverse of the semiconductor index
This mutual fund aims to fluctuate 3 times in the opposite direction of the daily price movement of the ICE semiconductor index. For example, if the index falls 2% in 1 day, this mutual fund aims to rise 6%. Conversely, if the index rises 2% in 1 day, this mutual fund aims to drop 6%.
This mutual fund uses 80% or more of its assets to invest in financial products to fluctuate 3 times in the opposite direction of the index. This includes ETFs (exchange-traded funds) and other financial products that track indices.
The ICE Semiconductor Index is a rules-based index that tracks the performance of the 30 largest semiconductor companies listed in the US. Examples include companies such as Intel and NVIDIA. This index is adjusted based on a company's market value.
This mutual fund is not a diversified investment since it concentrates on investing in specific indices. In other words, there is a risk that it will be greatly affected by trends in the semiconductor industry.
Thus, since this mutual fund aims for a 3-fold fluctuation in the opposite direction of the semiconductor index, it is suitable for investors aiming for large price movements in a short period of time.
Source: Microsoft Copilot
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