US Technology Optimiser Series 1
An investment designed to offer investors the ability to gain uncapped exposure to the performance of the US technology sector over a 2-year term with a 13% volatility target
Optimiser Investment Opportunity
We are introducing a new investment designed to give you exposure to the US tech sector. It has a mechanism that allows a patiently timed entry.
If the market goes for a run now you won’t miss out on current lows, however, if we see another significant sell off over the next six months there is the opportunity to choose the lowest monthly close price as our entry value.
With high levels of uncertainty in the market and deciding when to get back in proving difficult this investment allows you to take a cautious entry without having maximum risk on the table.
As an example, an initial investment of $7,950 would provide $50,000 exposure. The $7,950 is your maximum risk and the $50,000 gives you an uncapped earning potential.
Please view the investment overview, speak to an adviser or request the PDS. This investment closes on the 1st of May.
Investment
Highlights
- A total investment of $7,950 will provide you with $50,000 exposure.
- Exposure to the US Technology Sector for a two year term.
- Limited downside risk with uncapped upside potential.
- Receive an optimized entry point into the US Technology sector – buying at the lowest end of month close over the next 6 months.
- After the recent market pullback, investors can benefit from a lower starting level for their investment but also get a lower strategy value if the market falls further.
- Why This Investment?XLK itself tracks an index of S&P 500 technology stocks (number of holdings are 72) with the top 10 including, Microsoft Corp, Apple, Visa, Intel, Mastercard, Cisco Systems, Nvidia, Adobe, Salesforce and PayPal Holdings. XLK excludes small-caps and most midcaps to avoid lower volatility stocks and tilt
- Why This Investment?6 out of 7 of the biggest US companies by market cap are Information Technology
- Why This Investment?Many new-age businesses are built of a technology foundation and require technology to operate
- Why This Investment1 year following the GFC, the US Technology index was up 69.40%, 2 years following was up 98.14%. 1 year following the Dot Com Crash, the US Technology index was up 71.41%, 2 years following was up 71.41%.
The outlook of the US technology sector
April 15, 2020
SPEAK TO AN ADVISER ABOUT SIMILAR INVESTMENTS
By clicking submit, I agree to the terms of the Reach Markets Financial Services Guide that includes the Privacy Statement.