Hello, FT has an inverse ETF for the S&P and FTSE 100 but not Nasdaq - why not?
I really need to hedge my portfolio, because I recognise that higher interest rates will drive down share prices. Without such a hedging option I will have to look elsewhere because it’s not worth the pain.
I understand FT is for longer term investing, but I don’t see why ETFs that allow protection against falling prices should not be part of that mix. And if S&P, why not the Nasdaq (which is more overvalued)?
I’m afraid that neither of the two instruments are available in the UK currently, you might not be aware but many US-registered ETFs are not available in the UK/EU as they’re not compliant with UCITS regulations.
If you’re able to find a compliant version it’ll have UCITS in the title. More information can be found here
Good find @Qhyz looks like it could work. I’ll update the title, it trades on the LSE but in USD - historically this has been a stumbling block for they way Freetrade has built its engine. They’re working on this issue currently.
If you want a particular product please create a request for it. It will be considered by the relevant team. There may have been reasons in the past for not including certain types of products but as the platform and business evolves these could change. You lose nothing by making the request.
Without speaking for @adam & @Viktor, Historically they felt that in leverage & other more exotic instruments bad outcomes are more prominent. When the team roll out the complex investments declaration it might be something to be revisited.
Can’t agree I’m afraid. Short ETFs provide hedges on your portfolio particularly in this current environment. The 3x leverage is not a leveraged product where you could get wiped out if you get margin called; it’s essentially a 3x volatility product. The benefit of that Is you get to take a position at lower cost of capital. It’s also a 3x leverage on an index. Which at worst, you might be down c.-15%. Meanwhile there are blue chips that can drop 20% on a profit warning.
I use QQQS a lot on HL but it’s costing me loads on FX.
The lack of such products is what’s making me not move to FT entirely and HL is still my main portfolio.
Thanks for the useful comment. It will help some more people to understand the product.
My reading of the chain of messages above is not that @NeilB is agreeing or disagreeing. In fact he is the one who changed the topic title to vote for this particular product and commented it is a “good find”. He gave an opinion on the past but made it clear things are being revisited.
If anyone is interested in this product they should vote for it. Freetrade is expanding its share Universe and introducing different types of instruments with time.
Just to be clear, I wasn’t disagreeing with anyone in particular but more making the point that leveraged ETFs shouldn’t be lumped in with other leveraged products like CFDs, derivatives etc which can get margin called. I feel it’s an important point to make for the forum so people understand there’s a difference in risk.
For sure, appreciate people in FT who are trying to increase the product universe and improve the platform.
For those who don’t know much about this Exchange Traded Product, as a part of your research please go to the link in [Request] NASDAQ 100 3x Short Daily ETP - QQQS - #7 by Qhyz. Always look at the Key Information Document for any fund type product. The “Intended Retail Investor” section gives you an indication of what you need to be comfortable with. The “What are the risks …” section tells you the risk level assigned to this asset. This is a higher risk instrument according to the provider of the Instrument.