KUALA LUMPUR, Nov 29 ― Malaysia's first leveraged and inverse (L&I) exchange-traded funds (ETF) were mostly higher on the first day of trading in the main market of Bursa Securities today.
The four ETFs are TradePlus NYSE FANG+ Daily (2x) Leveraged Tracker (FANG-2XL), TradePlus NYSE FANG+ Daily (-1x) Inverse Tracker (FANG-1XI), TradePlus HSCEI Daily (2x) Leveraged Tracker (HSCEI-2XL) and TradePlus HSCEI Daily (-1x) Inverse Tracker (HSCEI-1XI).
As at 10.51am, FANG-2XL jumped 10 sen to RM4.10, FANG-1XI advanced seven sen to RM4.07, HSCEI-2XL declined seven sen to RM1.93 and HSCEI-1XI improved five sen to RM2.05.
Affin Hwang Asset Management Bhd has partnered Samsung Asset Management (Hong Kong) Ltd to become the first issuer of the ETFs.
Benchmarked against the Hang Seng China Enterprises Index and NYSE FANG+ Index, respectively, the ETFs will provide investors option to either gain a (2x) leverage or an inverse (-1x) position on the two indices.
Affin Hwang Asset Management Bhd managing director Teng Chee Wai said investors could express their market views through these instruments and employ them as building blocks in a portfolio whether as tools for trading or hedging purposes.
He added that the L&I ETFs would provide investors a tactical window to capitalise on benchmark movements by trading on market news/noise and profit from volatility, amid heightened volatility in markets today.
“We carefully handpicked the two indices for their secular and highly volatile trend, which is essential for short-term trading tools like L&I ETFs,” he said in a statement today. ― Bernama