What is the ISIN of Cathay TAIEX Daily Leveraged 2X ETF?

The ISIN of Cathay TAIEX Daily Leveraged 2X ETF is TW00000663L3.

What does leveraged daily exposure mean for Cathay TAIEX Daily Leveraged 2X ETF?

Cathay TAIEX Daily Leveraged 2X ETF aims to deliver 2 times the daily return of TAIEX (long). The leverage resets each trading day, so multi-day returns can differ materially from 2X the underlying's cumulative return.

What is volatility decay and how does it affect Cathay TAIEX Daily Leveraged 2X ETF?

Volatility decay (also called compounding drag) occurs because Cathay TAIEX Daily Leveraged 2X ETF rebalances daily. In choppy, sideways markets the cumulative return can significantly trail 2X the underlying's period return — even if the underlying ends flat. The effect intensifies with higher leverage factors and longer holding periods.

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Cathay TAIEX Daily Leveraged 2X ETF (00663L.TW) Price

Cathay TAIEX Daily Leveraged 2X ETF Price

— EUR

PRO

TER0.79 %

AUM10.58 B TWD

IndexTAIEX Leveraged 2X Index - TWD - Benchmark TR Gross

CurrencyTWD

Funds Launch7/1/2016

Cathay TAIEX Daily Leveraged 2X ETF Price

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Underlying

TAIEX

TAIEX2X Long Daily

TAIEX

Cathay TAIEX Daily Leveraged 2X ETF provides 2X daily exposure to TAIEX.

Leverage & Compounding Risk

This ETF rebalances daily to achieve its 2X target. Over periods longer than one day, compounding can cause returns to deviate significantly from 2X the underlying's return — especially in volatile, sideways markets (volatility decay). This product is designed for short-term trading, not buy-and-hold investing.