Investors should not base on this document alone to make investment decision. Please refer to the Prospectus for details including the product features and the risk factors. Global X S&P 500 Daily (-1x) Inverse Product (the “Product”) is an inverse product. Investment involves risks. There is no guarantee of the repayment of principal. Investor should note:
- The Product is not intended for holding longer than one day as the performance of the Product over a period longer than one day will very likely differ in amount and possibly direction from the inverse performance of S&P 500 Index (the “Index”) over that same period (e.g. the loss may be more than -1 times the increase in the Index).
- The Product seeks to obtain the required exposure through one or more Swaps with different Swap Counterparties. The Product is therefore exposed to counterparty risk and default risk of the Swap Counterparties and may suffer significant losses if a swap counterparty fails to perform its obligations. Derivative instruments are subject to valuation risk and liquidity risk and are susceptible to price fluctuations and higher volatility, which may results in large bid and offer spreads with no active secondary market. The Product may suffer losses potentially equal to the full value of the derivatives.
- The Product’s investments are concentrated in the United States. The value of the Product may be more volatile than that of a fund having a more diverse portfolio of investments.
- The trading price of the Unit on the SEHK is driven by market factors such as demand and supply of the Unit. Therefore, the Units may be trade at a substantial premium or discount to the Sub-Fund’s net asset value.