What are some common uses of ETPs?
Due to ETPs versatility, investors have found both tactical (shorter-term) and strategic (longer-term) uses for ETPs. Here are some of the more commonly used strategies.
Over or under-weight exposures on the basis of short-term views
Gain long-term asset allocation among primary asset classes such as equities, fixed income and commodities
Use ETPs to invest surplus cash to maximise returns and/or minimise cash drag
|Sub Asset Allocation
Strategic tilts within asset classes such as small capitalisation stocks
Access market exposure while evaluating managers or refining strategic investment view
Ability to refine portfolio positions without impacting longer-term holdings or gain quick access to liquidity for unexpected and immediate needs
|Leverage / Inverse Investing
Capitalise on short-term market movements with leveraged or inverse (short) investing
Fill gaps to desired allocation with exposure to specific areas of the market