Mis on KSM ETF (6D) Short Leveraged DAX x2 Monthly ISIN?

KSM ETF (6D) Short Leveraged DAX x2 Monthly ISIN on IL0011470163.

What does leveraged daily exposure mean for KSM ETF (6D) Short Leveraged DAX x2 Monthly?

KSM ETF (6D) Short Leveraged DAX x2 Monthly aims to deliver 1 times the daily return of DAX (short/inverse). The leverage resets each trading day, so multi-day returns can differ materially from 1X the underlying's cumulative return.

What is volatility decay and how does it affect KSM ETF (6D) Short Leveraged DAX x2 Monthly?

Volatility decay (also called compounding drag) occurs because KSM ETF (6D) Short Leveraged DAX x2 Monthly rebalances daily. In choppy, sideways markets the cumulative return can significantly trail 1X the underlying's period return — even if the underlying ends flat. The effect intensifies with higher leverage factors and longer holding periods.