ETF Securities Nasdaq ‘Ultra’ series
ETF Securities has launched two exchange traded 'Ultra' products that offer leveraged exposure to the Nasdaq 100 index.
The ETFS Ultra Long Nasdaq 100 Hedge Fund (ASX code: LNAS) provides investors with geared returns that are positively related to the returns of the Nasdaq 100 index, while the ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX code: SNAS) provides investors with geared returns that are negatively related to the index.
Both ETFs are currency hedged and achieve exposure to the Index using derivatives. They do this by investing in a portfolio of short E-mini Nasdaq 100 Futures contracts listed on the Chicago Mercantile Exchange. They are designed to be used by highly experienced investors and traders.
“These products are positioned as short-term investments - investors might trade these for a day, specifically as a temporary conviction play,” Kris Walesby, chief executive officer of ETF Securities, said.
“These trading products give power to investors to trade based on their expectations of whether the Nasdaq 100 will gain or fall in the short-term, as well as offer the ability to create a temporary hedge for existing positions and avoid the need to sell, either crystallising losses or creating a capital gain.”