The ETF Securities Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS) is an ETF designed for trading, since it provides a negative (or ‘inverse’ or ‘opposite’) exposure to the popular Nasdaq-100 index.
SNAS is an hedge fund ETF designed for making short-term trades on the direction of the NASDAQ 100 index. It’s effectively an index fund that adds leverage or ‘gearing’ and short selling so that a 1% fall in the NASDAQ 100 index causes a 2% to 2.75% rise in the LNAS ETF (less fees and costs). The opposite is also true. For example, the SNAS ETF can (and will) move in the opposite directions and result in larger losses for investors if the NASDAQ 100 index rises.
The SNAS ETF could be used by investors who are seeking to add short exposure to their portfolio and are willing to accept the higher risks associated with that. There are particular risks associated with geared ETFs that your financial adviser can (and should) explain to you before investing.
The following warnings are applied by our team, based on quantitative metrics and our internal methodology. These risks are not exhaustive and therefore they should not be relied upon. Always read the PDS of the function and speak to your financial adviser before acting on this information.
This brilliant (and free!) report is issued by Best ETFs Australia, a division of The Rask Group Pty Ltd. It is not a recommendation.
Speak to a financial professional before relying on this information and please read our Financial Services Guide (FSG).
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