ChinaAMC launches 2x inverse Nasdaq 100 ETF in Hong Kong

Sep 6th, 2019 | By | Category: Alternatives / Multi-Asset

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China Asset Management Company has launched a new exchange-traded product in Hong Kong, providing leveraged inverse exposure to the Nasdaq 100 Index.

Rob Hughes, Vice President and Head of Advisory Services for Nasdaq Global Indexes.

Rob Hughes, Vice President and Head of Advisory Services for Nasdaq Global Indexes.

The ChinaAMC Direxion NASDAQ-100 Daily (-2x) Inverse Product (7522 HK) has listed on Hong Kong stock exchange and comes with a hefty expense ratio of 2.20%.

The ETP provides twice the daily inverse performance of the Nasdaq 100, an index consisting of 100 of the largest US and international non-financial companies listed on Nasdaq Exchange.

The index is a widely followed barometer of the health of the US large-cap segment and is known for its bias towards technology stocks.

Indeed, tech stocks occupy the top five largest positions in the index – Microsoft (11.2%), Apple (10.5%), Amazon (9.8%), Alphabet (8.6%), and Facebook (5.0%) – with the sector accounting for 41.5% in total.

The ETP has been launched in partnership with Rafferty Asset Management, the parent company of US-based specialist inverse and leveraged ETP provider Direxion. Rafferty will act as an advisor to ChinaAMC.

“The Nasdaq 100 is a powerful tool for investors to gain exposure to the world’s most innovative companies,” said Rob Hughes, Vice President and Head of Advisory Services for Nasdaq Global Indexes. “Our work with ChinaAMC (Hong Kong) and Rafferty Asset Management in providing the index for the launch of ChinaAMC Direxion NASDAQ-100 Daily (-2X) Inverse Product is a significant step in serving investors on a global scale.”

“We are seeing significant interests from investors in trading our Nasdaq 100 Index daily (-1x) inverse product,” added Frederick Chu, Head of ETFs at ChinaAMC (Hong Kong). “In response to our investors’ request, we decided to come up with the (-2x) inverse version in order to cater to our investors’ needs.”

Hong Kong welcomed its first leveraged inverse ETP in May 2019. The CSOP Hang Seng Index Daily (-2x) Inverse Product (7500 HK) was launched by CSOP Asset Management and provides twice the inverse daily return of the Hang Seng Index, a reference for the 50 largest companies listed locally in Hong Kong. It comes with an expense ratio of 1.80%.

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