What types of ETFs do we not use?

There are a few types of ETFs on the market that differ from our passive, index-oriented investment philosophy, which is geared towards maximizing market participation. These are

• Leveraged ETFs
• Short ETFs
• Exchange-traded active funds (active ETFs)

True Wealth does not use any of the above ETF classes. We do not use leveraged ETFs, short ETFs or actively managed ETFs. Our investment approach is long-term and the underlying mechanics of these ETFs would lead to significant losses in value over time in different market phases. In addition, the investment costs of these ETFs are too high, which also contradicts our principle of cost efficiency.