Can You Make A Million Dollars By Trading ETFs? Yes, Here's How
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The risks of investing in the Sub-Fund are therefore greater than those of investing in other types of ETF.
In particular investment in futures contracts involves specific risks such as high volatility, leverage, rollover and margin risks. Here are the risks which investors may face:.
The Index is not created, owned, endorsed, sponsored, sold or promoted by Goldman or its affiliates and Goldman bears no liability with respect to the Index or data related thereto. In no event shall any user publish, retransmit, redistribute or otherwise reproduce any Interactive Data Information in any format to anyone, and no user shall use any Interactive Data Information in or in connection with any business or commercial enterprise, including, without limitation, any securities, investment, accounting, banking, legal or media business or enterprise.
Prior to the execution of a security trade based upon the Interactive Data Information, you are advised to consult with your broker or other financial representative to verify pricing information. You acknowledge that the data is provided for information only and should not be relied upon for any purpose. HKEx listed, Stock Code: Investment risk The Sub-Fund is an investment fund. There is no guarantee of the repayment of principal.
Therefore your investment in the Sub-Fund may suffer losses. Oil market risks High volatility risk: As the exposure of the Sub-Fund is concentrated in the crude oil market, it is more susceptible to the effects of oil price volatility than more diversified funds. Futures contracts risks Contango risk: The price of WTI Futures Contracts can be highly volatile and is influenced by, among other things, interest rates, changing market supply and demand relationships, trade, fiscal, monetary and exchange control programs, policies of governments and political changes.
Because of the low margin deposits normally required in futures trading, an extremely high degree of leverage is typical of a futures trading account. As a result, a relatively small price movement in a WTI Futures Contract may result in a proportionally high impact and substantial losses to the Sub-Fund, having a material adverse effect on the Net Asset Value. Like other leveraged investments, a futures transaction may result in losses in excess of the amount invested.
Accordingly, the Sub-Fund may underperform a similar investment that is linked to the spot price of WTI crude oil. Margin risk Generally, most leveraged transactions, such as WTI Futures Contracts, involve the posting of collateral or margin. Increases in the amount of collateral or margin or similar payments may result in the need for the Sub-Fund to liquidate its investments at unfavourable prices in order to meet collateral or margin calls.
This may result in substantial losses to Unitholders. Government intervention and restrictions risk Governments and regulators may intervene in the financial markets, such as by the imposition of trading restrictions.
This may affect the operation and market making activities of the Sub-Fund, and may create negative market sentiment which may in turn affect the performance of the Index and the Sub-Fund. When there is a decline in the Index, the Sub-Fund will also decrease in value. Therefore, the Units may trade at a substantial premium or discount to the Net Asset Value. As investors will pay certain charges e. There is no guarantee that any market making activity will be effective.
The Manager will monitor and seek to manage such risk in minimising tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Index. Termination risk The Sub-Fund may be terminated early under certain circumstances, for example, where the Index is no longer available for benchmarking or if the size of the Sub-Fund falls below HKD40 million. Any distribution received by a Unitholder on termination of the Sub-Fund may be less than the capital initially invested by the Unitholder, resulting in a loss to the Unitholder.
Fund Objective and Investment Strategy. Interactive Data Hong Kong Time: There can be no assurance that the Sub-Fund will achieve its investment objective. Distributions may be paid out of capital or effectively out of capital. The return of the Index is calculated based on the change in price levels of the nearest contract, the next nearest contract as well as the gain or loss obtained by "rolling" hypothetical positions in such WTI Futures Contracts as they approach delivery.
The Index is denominated in USD and is calculated and published on a near real-time basis. The Index was launched on 1 May and had a base of as at 7 January