XACT Europe Bull 2 & XACT Europe Bear 2
Following the success of XACTs leveraged Bull and Bear funds XACT has launched two new funds with leverage. The funds, XACT Europe Bull 2 and XACT Europe Bear 2, follow the Dow Jones EURO STOXX 50® index with two times leverage.
XACT Europe Bull 2 which moves in the same direction as the market will gain roughly 2% for every day that the index gain 1%. If the index during one day decreases by 1% XACT Europe Bull will decrease by roughly 2%.
XACT Europe Bear 2 moves in the opposite direction to the market. If the index during one day increases by 1% XACT Europe Bear 2 will decrease by roughly 2%. If the index decreases by 1% during one day XACT Europe Bear 2 will increase by roughly 2%.
Remember that funds with leverage behave differently compared to funds without leverage. It is therefore important that you understand how the funds work prior to investing.
Leveraged funds are only suitable as an investment if you:
- Understand special characteristics of these leverage investment products
- Understand the effect of daily rebalancing
- Actively and continuously monitor your portfolio since funds with leverage will go up or down more quickly in value than corresponding investments without leverage