What Are the Risks of Investing in US ETFs on Pluang?
The main risks of US ETFs on Pluang are falling prices, a weaker dollar against the rupiah, trading-hour gaps and, for leveraged ETFs or Pluang's leverage feature, losses that build quickly. US Stocks and ETFs on Pluang are facilitated by PT PG Berjangka, a Financial Derivatives Trading Intermediary for derivative products with securities as the underlying asset, licensed and supervised by OJK. Diversified funds spread risk across many holdings but still fall when their market falls. Without leverage, the most you can lose on a position is the amount you put in.
Main risks and what you can do
| Risk | What it means | What you can do |
|---|---|---|
| Market | The ETF's price follows its holdings and can fall sharply in a sell-off | Spread your money across different assets and know how long you plan to invest |
| Concentration | Sector, theme or single-country ETFs move with one part of the market | Check what the ETF holds before you buy |
| Currency | Your rupiah return also depends on the USD/IDR rate | Plan for conversion; the fee is 0.25% plus VAT on the fee |
| Interest rates | Bond ETF prices fall when rates rise, most for long-dated funds | Match the fund's maturity to how long you plan to hold |
| Trading hours | Regular US hours are 21:30–04:00 WIB (20:30–03:00 during US daylight saving time); outside them, only ETFs marked "24" trade, with Limit orders only | Use Limit orders to control your price |
| Leverage | Leveraged and inverse ETFs reset daily; Pluang's 2x leverage adds a daily fee and margin calls | Use them only if you understand daily resets and margin |
| Fund costs | The expense ratio reduces returns every year | Compare expense ratios before you buy |
What the protection layers cover, and what they don't
Alpaca Securities LLC, a US broker regulated by the SEC and FINRA, holds the securities in segregated accounts with SIPC cover of up to US$500,000, including up to US$250,000 in cash, plus additional Lloyd's cover of up to US$30,000,000 if the broker fails. Uninvested USD cash sits at BMO Harris with FDIC cover of up to US$1,000,000 per user. These layers protect against the failure of a broker or bank, not against market losses. Prices can go up or down, and past performance does not guarantee future results.
Learn more: how your money is protected in US Stocks and why leverage is risky.
Related questions:
Q: Is Pluang regulated to offer US ETFs?
Yes. US Stocks and ETFs on Pluang are facilitated by PT PG Berjangka, licensed and supervised by OJK. Every transaction is recorded at the Jakarta Futures Exchange (JFX) and cleared through Kliring Berjangka Indonesia (KBI).
Q: Can I lose more than I invest in a US ETF?
Not on a non-leveraged position: the most you can lose is the amount you put in. With Pluang's leverage feature, losses come out of your USD Margin balance, and if your margin level falls below 30%, positions are sold automatically.
Q: Are ETFs less risky than single stocks?
A broad ETF spreads your money across many companies, so one company's fall hurts less. But a sector, single-country or leveraged ETF can swing as much as a single stock, or more.
Q: Does SIPC cover protect me if the ETF's price falls?
No. SIPC and the additional Lloyd's cover apply if the US broker fails. They do not cover a fall in the price of the ETF you hold.
Last updated: 6 November 2026