CSOP Launches 2x Leveraged and -2x Inverse ETPs on US Oil & Gas Companies, Tracking Solactive Index
The Solactive US Large Oil & Gas Companies Index is a representation of the 15 largest securities listed on a stock exchange in the United States, from the Oil and Gas sectors. To be eligible for inclusion in the index, companies must be liquid enough and classified under the following industries: Oilfield Services/Equipment, Integrated Oil, Oil & Gas Pipelines, Oil & Gas Production, Oil Refining/Marketing, and/or Contract Drilling.
The CSOP US Large Oil & Gas Companies Daily (2x) Leveraged Product (Code: 7204.HK) provides investment results that, before fees and expenses, closely correspond to twice the daily performance of the Solactive index. The CSOP US Large Oil & Gas Companies Daily (-2x) Inverse Product (Code: 7505.HK), on the contrary, provides investment results that, before fees and expenses, closely correspond to minus two times the daily performance of the Solactive index.
Both ETPs are designed to allow investors to take tactical positions on the movement of major oil & gas companies from the US. In times of uncertainty, L&I products have been rising in popularity, as they can help investors to efficiently achieve short-term portfolio reallocations. While, for instance, leverage allows for positioning using substantially reduced levels of capital, inverse products can be excellent tools for tactical risk-hedging and diversification.
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “L&I products are increasingly gaining importance for investors who want to pursue short-term market views to generate capital gains, increase diversification, or hedging their positions. We are very pleased to expand our partnership with CSOP and serve one more time as the index provider of choice for the leading issuer of L&I products in Hong Kong.”
Ding Chen, CEO of CSOP comments: “We are delighted to bring this pair of Oil & Gas leveraged and inverse products to global investors jointly with Solactive, further expanding our L&I products line to 19 in total. I believe CSOP US Large Oil & Gas Companies Daily (2x) Leveraged Product (7204.HK) and CSOP US Large Oil & Gas Companies Daily (-2X) Inverse Product (7505.HK) will be excellent trading tools that can help investors take advantage of US oil & gas sector movements amid this volatile market. We look forward to bringing more ETFs through our partnership with Solactive to our investors in the future.”