Xact Bull and Xact Bear are leveraged ETFs. Leveraged funds behave differently than unleveraged funds and it is therefore important to understand how these funds work before you invest.
Leveraged ETFs are only suitable as an investment if you:
- understand the characteristics of leveraged products
- understand the effects of daily rebalancing, and
- actively work with and continuously monitor your investment portfolio, since leverage causes the value to change faster than equivalent investments without leverage.