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What types of ETFs do we not use?

There are also leveraged ETFs on the market that aim to outperform the daily return of the index by a factor of two or three. Or they aim to achieve a negative daily performance of the index (short ETF). These instruments are speculative in nature and may be justified for short-term use by traders, but should be well understood by the investor.

We do not use leveraged ETFs or short ETFs. Our investment approach is long term and the underlying mechanics of these ETFs would lead to a sharp fall in value over time in different market phases.

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