Scedar of the SPXL represents a tool of high potential but also of high risk, ideal for experienced investors with a tactical and very short term on the market.
Argentine bags and markets (byma)with approval of the National Securities Commission (CNV)incorporated five new ETFS yields to the local market, expanding the range of instruments available for Argentine investors looking for international diversification. However, one of them caught the attention of analysts and operators: the Yield from the Daily S&P 500 Bull 3x Shares (SPXL).
This fund quoted in the USA aims to replicate Three times the daily performance of the S&P 500 indexwhich means that amplifies both the risks and the casualties of the market. It is a tool designed for investors with a Very optimistic and short -term vision on the US shareholding market. Nevertheless, Your risk level is considerable.
How it works
“A -1% movement in the index can translate into a loss of -3% in the ETF,” specialists warn. In high volatility contexts or deep corrections, this could lead to very significant losses, especially for investors operating with additional leverage Through stock markets in pesos – a common practice in Argentina, given the relatively low financing cost.
In addition, since it is a yield, the performance is also exposed to exchange risk linked to the dollar counted with liquidation (CCL). Thus, a drop in the contribution of the financial dollar can erode the yield in pesos, even if the underlying asset in the USA maintains its value in dollars.
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Reuters
The structure of the ETF, which is Rebalance dailyalso introduces complexity: in longer temporary horizons, performance may significantly differ from the accumulated behavior of S&P 500, due to the effect of volatility on leverage.
From the financial sector they warn that It is not an instrument suitable for conservative profiles or to keep in a long -term portfolio. It is considered rather a Tactical and punctual betrecommended only for experienced investors with high risk tolerance.
Source: Ambito
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