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The Index which the Short/ Leveraged ETC is tracking has moved by X % over the past week but my Short / Leveraged ETC has moved Y%. Why doesn the ETC track the exact movement of the Index?

April 26, 2017exact index leveraged Moved past week short track

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The Index which the Short/ Leveraged ETC is tracking has moved by X % over the past week but my Short / Leveraged ETC has moved Y%. Why doesn the ETC track the exact movement of the Index?

1 Answer

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The Short or Leveraged ETC is designed to track -1 or 2 times the daily % change of the index. However, the return may not equal -1 or 2 times the change in the Index over periods longer than one day. Please see Part 2 of the Prospectus for more information.