ETF Risk Warning:
John Bill
Last Update één jaar geleden
1. ETFs are risky investments
ETF trading is a risky investment. Although compared with contracts or other derivatives, the risk of ETF trading is relatively low, but the leverage attribute of ETF determines that it is not a low-risk investment product. If the investment direction is wrong, it will still cause a large loss.
2. ETFs are not long-term investment products
Due to the inherent market risk and the capital cost of ETF products and the net worth wear caused by rebalancing, the longer you hold ETF products, the greater the wear and tear you may suffer. Coupled with unknown risks, it may even cause the net value of ETF products to return to zero and the products will go offline.
Investors who intend to invest in long-term or hold ETF products shall bear their own risks.
3. The position risk of price deviation from value
The price of ETF products fluctuates up and down around the net value. When the market fluctuates greatly, there will be a large deviation between the price of ETF products and the net value. For users who already hold ETF products, there is a risk of loss of ETF product assets.
It is recommended to try to avoid trading when the price of ETF products deviates greatly from the net value.
4. Equity wear and tear
ETF products will have net worth wear and tear under volatile market conditions.
Assuming that the rise and fall of BTC within 4 days are 5%, -5%, 5%, and -5%, respectively, the performance of BTC3L and BTC3S is as follows:
The cumulative rise and fall of BTC is -0.50%, and the cumulative rise and fall of the net value of BTC3L and BTC3S are both -4.45%, which is more than three times the rise and fall of BTC. Therefore, in a volatile market, ETF products may experience net worth wear and tear.
And when the market fluctuates violently, if the fluctuation range of the underlying asset compared with the previous rebalancing time point exceeds a given threshold, we will actively rebalance the ETF on the down side within the day to control risks. Will cause wear and tear on the net value of the ETF.
After understanding the risks of ETF products, please evaluate your risk tolerance and trade and hold cautiously.