XACT – Smart funds at a low cost

Equities is the asset class that has provided best returns over the long term. Since 1900, returns on Swedish equities have averaged 9.9 per cent per year, which after inflation is 6.1 per cent – twice as much as government bonds during the same period. This ranks the Swedish stock market as the fourth best performing market worldwide after Australia, South Africa and the US. However, it only accounts for one per cent of the total capital in all stock markets worldwide. Investing in XACT ETFs means that you in one single investment achieve risk diversification and hence avoid the specific company risk that might otherwise arise from holdings which include just a few individual stocks.

XACT Bull and XACT Bear are leveraged ETFs. Leveraged funds behave differently than unleveraged funds and it is therefore important to understand how these funds work before you invest. Additional information is available about our leveraged ETFs in the section, “About ETFs”. Leveraged ETFs are only suitable as an investment if you: - understand the characteristics of leveraged products - understand the effects of daily rebalancing - actively work with and continuously monitor your investment portfolio, since leverage causes the value to change faster than equivalent investments without leverage.

Allocation between different asset classes enables you to reduce larger fluctuations in your portfolio. Generally speaking, equities benefit from an economic upturn, while fixed income investments tend to provide better returns in a downturn. A fixed income investment therefore provides a good balance to shareholdings and can thus contribute to a more stable portfolio performance. XACT Obligation offers you the opportunity to add Swedish fixed income investments to your portfolio. Fixed income ETFs are bought and sold the same way as equities, making them a good fit in a traditional equity portfolio.