Momentum investing aims to take advantage of an existing and identified market trend. Typically, exposure is increased to assets showing upward-trending prices and decreased to assets with downward-trending prices.
The motivation for momentum investing comes from the observation that trends bear a certain “inertia” and persist for some time and it is possible to profit by staying with the trend until it subdues.
The Leonteq Multi Asset Index (Index) provides a smart way to gain exposure to momentum investing and is specifically designed for Swiss oriented investors. The Index is dynamically capturing the trending nature of asset prices across five different asset classes. Each asset class in the Index is represented through an exchange traded fund (ETF) hedged in CHF.
More specifically, the Index increases exposure to the ETF that has experienced the best trailing 12-month total return performance. The Index is constructed by equally-weighting 12 buckets at inception. Each bucket has annual rebalancing dates at which the bucket reallocates 100% in the ETF with best trailing 12-month total return performance. The only difference between each bucket is that rebalancing dates are offset by one month. Such mechanism allows for dynamic and timely capturing (month by month) of the momentum trend and aims to reduce volatility by gradually investing and divesting in ETFs. At any point in time, the Index may be invested in one ETF (if all 12 buckets allocate to the same ETF) or up to five ETFs.
The product offers 100% participation to the Leonteq Multi Asset Index less a management fee of 0.75% p.a. and provides an easy and transparent access to momentum investing across five asset classes. Specifically designed for Swiss oriented investors, the product is denominated in CHF and all components of the Index are either denominated in CHF or CHF-hedged.
Management fee: 0.75%
Issuer: Leonteq Securities AG
We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: 058 800 11 11, email info@leonteq.com or contact us here.
