Bangkok: The Stock Exchange of Thailand (SET) has launched trading of a new category of exchange-traded funds (ETFs), specifically Leveraged and Inverse ETFs. This launch marks the first introduction of such financial products in Thailand, providing investors with new avenues for potential returns and risk management.
According to Thai News Agency, Ms. Rinjai Chakrapipat, Deputy Managing Director and Head of Marketing at SET, emphasized that these ETFs offer innovative strategies for investors, allowing them to potentially enhance profits or hedge against market fluctuations. Trading commenced on September 26th with three specific funds introduced: the B-Cap Set 50 Daily Leverage ETF (2X) labeled as "2X01BSET50," and two inverse ETFs, "1I01BSET50" and "2I01BSET50." These funds aim to provide returns that are either magnified or inverse to the SET50 Total Return Index (SET50 TRI), depending on the market movement.
Leveraged ETFs, designed to amplify market gains, give investors the opportunity to earn returns that are multiple times the daily returns of the underlying index. Inverse ETFs, conversely, offer returns that move in the opposite direction of the market, providing tools for risk mitigation during downward trends. The introduction of these ETFs is intended to support investors in diversifying their portfolios based on their risk tolerance and market outlook.
Ms. Rinjai highlighted SET's commitment to enhancing market infrastructure and providing educational resources for investors. The focus on indices, particularly Thai stocks, aims to foster a robust ecosystem for financial products. However, there is potential for future expansion into foreign assets as more issuers enter the market, offering investors a wider range of choices.
Mr. Chaiporn Nompitakcharoen from Bualuang Securities noted the potential for the SET Index to rise by approximately 150 points next year, suggesting that leveraging a diverse range of instruments like Leveraged and Inverse ETFs can help investors adapt to changing market conditions effectively.
Ms. Methawadee Prasertsinthana of Bangkok Capital Asset Management Co., Ltd. (BCAP), which issued the ETFs, stated that the introduction of these funds meets the demand for modern investment tools. The ETFs are expected to enhance liquidity and elevate the Thai ETF market, aligning it with international standards. The specific ETFs, "2X01BSET50," "1I01BSET50," and "2I01BSET50," are tailored for different market conditions, providing investors with flexible options to manage their portfolios amid market volatility.