PPEM Profile
The PortfolioPlus Emerging Markets ETF aims to deliver daily investment results that correspond to 135% of the daily performance of the FTSE Emerging Index. This leveraged approach is designed to amplify the returns of the index, providing investors with a magnified exposure to emerging market equities. The fund’s objective is to offer higher returns on a daily basis, reflecting its strategy to exceed the index's performance by 135% before accounting for fees and expenses.
Under normal market conditions, the ETF invests at least 80% of its net assets, including any borrowings for investment purposes, in securities that are part of the FTSE Emerging Index. This includes a diverse array of stocks from emerging markets, providing broad exposure to economies and companies in these rapidly growing regions. The fund may also invest in exchange-traded funds (ETFs) and other financial instruments that replicate the performance of the index or are aligned with its investment strategy.
The FTSE Emerging Index, which the fund tracks, encompasses a broad range of companies from emerging market countries, reflecting various sectors and industries. This index is a widely recognized benchmark for evaluating the performance of emerging market equities. By investing in securities that are part of this index, the fund provides investors with a comprehensive exposure to the growth potential of these markets, which can offer high returns but also come with increased volatility.
The ETF’s use of leverage, targeting 135% of the index's daily performance, means that it can magnify both gains and losses. Investors should be aware that while this leverage can enhance returns in rising markets, it also increases the risk of significant losses if the index declines. The fund is designed for short-term trading and may not be suitable for all investors due to the inherent risks associated with leveraged investments.
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