ABOUT KIM KINDEX Synth-Gold Futures Leverage ETF(H)
This exchange-traded fund (ETF) provides investors with leveraged exposure to the daily performance of gold futures contracts. It aims to magnify the returns of gold futures, both positive and negative, by seeking a return that is a multiple (likely two times) of the daily change in a benchmark index that tracks gold futures contracts. Essentially, it is a short-term trading tool designed for sophisticated investors who understand the risks and potential rewards associated with leveraged investments. This particular fund focuses on replicating the daily performance of these contracts with high speed and leverage, and as a result it will not behave like a normal index fund. The fund does not directly own physical gold, and instead invests in financial instruments like futures contracts that are based on the price of gold. It is important to note that due to the leverage, the daily performance of the fund can be significantly amplified, and it will compound its performance every single day. While this can result in significant gains when the price of gold futures moves favorably, it can also result in substantial losses when prices move against the investment. It is not designed for long-term, buy-and-hold investing, and is intended for experienced traders with a higher risk tolerance who intend to hold the fund for a single day. Due to the leverage, the performance of the fund will not match the performance of the underlying asset over periods that are longer than one day. Instead, any such performance will be amplified and compound in complex ways that make its long term performance unpredictable. Finally, it’s worth noting that the use of "H" at the end of this fund's name often means that it is hedged against currency fluctuations.