To The Moon

🌟🌟🌟CSOP Asset Management has just launched Asia's first batch of 9 single stock Leveraged and Inverse (L&I) ETFs on the Hong Kong Stock Exchange on March 24. 

This will provide me with more ways to trade my favourite Tech Stocks.  No more late nights as these L&I ETFs trade during Asia's trading hours.

The 9 Single Stock Leveraged and Inverse ETFs are focused on just 5 stocks - Nvidia, Tesla, Coinbase, MicroStrategy and Berkshire Hathaway.

For Berkshire Hathaway, CSOP only has 2x Leveraged ETF.  There is no Inverse ETF for Berkshire Hathaway.  I believe that CSOP thinks Warren Buffett's company is not a good stock to have an inverse ETF.

Of the 9, I am most interested in Nvidia 's Leveraged  ETF $XL2CSOPNVDA(07788)$ and Inverse $XL2CSOPNVDA-U(09788)$ as well as Tesla' s Leveraged ETF $XL2CSOPTSLA(07766)$ and Inverse ETF $XL2CSOPTSLA-U(09766)$

CSOP said that these latest L&I ETFs use swap based synthetic replication strategy to track two times (2x) the daily performance as well as the inverse of two times (2x) the daily performance of the underlying stock.

Each ETF has a listing price of around HKD 78 per unit and a minimum trading lot of 10 units.  The management fee is 1.6% of the product 's Net Asset Value (NAV) per year.

On checking Wednesday' s trading, the last closing price of Nvidia' s Leveraged ETF was HKD 80.54, down 1.49% while Nvidia's Inverse ETF was just HKD 10.34, down 1.34%.

Tesla's Leveraged ETF was up 1.33% at HKD 74.46 while Tesla's Inverse ETF was up 1.64% at HKD 9.60.

A note of caution, Leveraged and Inverse ETFs are only suitable for daily trading.  They are not meant for long term hold due to their compounding nature. 

I also did a comparison with Nvidia and Tesla's  counterparts in the US.   $GraniteShares 2x Long NVDA Daily ETF(NVDL)$  is currently trading at USD 40.97, down 11.5% on Wednesday trading while Nvidia's Inverse ETF ( which trades at 1.5x short) is up 8.5% at USD 27.42.

Tesla's Leveraged ETF TSLL is trading at USD 10.55, down 10.9% on Wednesday trading while TSLS, the Inverse Tesla  ETF is trading at USD 10.66, up 5.4%.

I prefer to trade Leveraged and Inverse ETFs as my losses, should I make a wrong decision, is capped at the price that I bought.  In Options Trading, losses can be much more as there is a minimum lot size of 100 units. 

One of the best things about the new CSOP single stock L&I ETFs is that there is no withholding 30% tax for dividends, unlike their US counterparts. 

CSOP is the largest Leveraged & Inverse Product Issuer in Hong Kong.  CSOP was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China.  They are also in Singapore too, regulated by MAS.   Since their establishment in 2008, CSOP has become a prominent ETF issuer in the industry.   The Fund Manager  has also served as a pioneer in bridging the gap between Chinese markets and international investors through their financial offerings from ETFs to financial derivatives.  As of 31 December 2023, total assets under management of CSOP is over USD 14.7 billion. 

I have put Nvidia and Tesla's CSOP L&I in my watch list. I am very excited that Asia finally has its  very own Leveraged and Inverse ETFs. 

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