ETF CFDs
Exchange Traded Funds (ETFs) are investment vehicles mirroring the performance of pooled assets, which could include bonds, basket of shares, or a group of commodities. It features exclusive benefits including investment diversity, pricing transparency, flexibility, and affordability.
With the offering of ETF CFDs, AETOS provides investors the opportunity to trade on the underlying ETFs’ prices without holding ownership interest and with low capital requirement.
AETOS ETF CFDs provide exposure to some world-renowned ETF issuers including but not limited to iShares and Vanguard.
iShares ETFs
Managed by the largest investment manager Blackrock, iShares is a collection of ETFs that cover a broad range of asset classes, risk profiles and investment outcomes. iShares is the largest issuer of ETFs in the US and globally. You can trade a variety of iShares ETF CFDs with AETOS, including iShares S&P 500 Growth ETF CFD, iShares Russell 1000 Growth CFD and iShares Core S&P 500 ETF CFD and many more.
Vanguard ETFs
Vanguard is the second-largest provider of ETFs in the world, with around $7 trillion in global assets under management. Combing the diversification of mutual funds with low investment minimum and real-time pricing, Vanguard ETFs tailor portfolios to investors’ various needs for investment goals, risk tolerance, and time horizon. AETOS offers a range of Vanguard ETFs CFDs, including CFDs on Vanguard Total Stock Mkt ETF, Vanguard FTSE Developed Bond ETF and Vanguard S&P 500 ETF.
Product
Specifications:
US ETF CFDs
| Acct Trading Platform | MT5 |
| Margin Requirements | 20% |
| Commission | 2 US cents per lot with a minimum of USD 10 per trade |
| Lot | 1 lot equals to 1 ETF CFD. 10-1,000 lots /per trade with an incremental step of 10. Max of 10,000 lots |
| Minimum deposit | AUD 250 |
| Stop out | 80% |
| Overnight Funding Rate | Financing Benchmark Rates +- 2.5% |
| Trading time | 13:31 -19:55 GMT |
Example:
Example- Buying 500 unit (lots) of IWM Exchange-Traded Fund (ETF) CFDs in view that the ETF price will rise.
| Description | Calculation |
| IWM ETF CFD is trading at 182.27/182.28. Buying 500 unit (lots) of IWM ETF CFDs at the ask price 182.28. A commission is subject to be charged at 2 US cents per lot with a minimum of 10 USD. | Commission: 500*0.02= USD 10 (>=USD 10) |
| The leverage level set on IWM ETF CFD is 5:1 which means that AETOS requires 20% of the contract value as an Initial Margin to be deposit into AETOS’ Trading Account. | Initial Margin: 500*1*182.28*20% = USD 18,228 |
| You hold 500 unit (lots) IWM ETF CFDs open overnight and the end of day price of IWM ETF CFD is 185.25. The overnight funding rate of buying IWM ETF CFD is -3.26%, an interest adjustment would apply. | Overnight Swap charge: 500*1*185.25*(-3.26%/360) = USD 8.39 |
| IWM ETF CFD is trading at 192.25/192.26 at the next trading day. You close 500 unit (lots) IWM ETF CFDs at the bid price 192.25. A commission is subject to be charged at 2 US cents per lot with a minimum of 10 USD. | Commission: 500*0.02= USD 10 (>=USD 10) |
| Your total net gain is the difference between the opening position(s) and the closing position(s) plus/less the costs and Interest Adjustment (if applicable). | Net Gain: (192.25-182.28)*500*1-10-8.39-10= USD 4,956.61 |
If IWM ETF CFD is trading at 180.25/180.26 at the next trading day and you close your position at bid price 180.25, you would have made a loss of USD 1,043.39.