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SHORT & LEVERAGED ETP CENTRE

 

The WisdomTree Short & Leveraged (S&L) family of exchange traded products (ETPs) is one of the most comprehensive, innovative ranges of specialist S&L ETPs in the world. Our extensive Short & Leveraged platform offers a range of fully collateralised ETPs which are available in leverage factors between -5x and +5x. 

 

Through these award-winning products, investors can access a broad range of Equities, Commodities, Fixed Income, Alternatives and Currency strategies, meaning they can look to magnify returns on a daily basis through positive or inverse leverage, take a hedging position efficiently, and access alternative or unique strategies.

 

This specialised branch of ETPs, like other investment products offering short and leveraged exposure, requires a certain level of understanding and due diligence. In this centre, WisdomTree aims to provide an informative reference point for investors seeking to educate themselves about the opportunities and the risks presented by short and leveraged ETPs.

S&L HEATMAP

 

The WisdomTree S&L heatmap illustrates the daily movement of underlying benchmarks for all asset classes. 

 

MARKET NEWS

Slight rebound in oil prices

31 Mar 2020

A couple of pieces of news are lending support to oil prices today. Firstly the release of Chinese Purchasing Managers Indices (PMI), showed the state of manufacturing in China was better than expected in March 2020. After a steep contraction in February, the market was expecting another below 50 reading (consistent with another contraction). In fact, the numbers show a small improvement (i.e. PMI above 50). But we should bear in mind that this is from extremely depressed levels in February when significant portions of the economy were in lockdown. An improving PMI reading in China could revise market projections for oil demand higher.
The second piece of news was that President of the US Trump called President of Russia Putin. There are some who are hopeful that this could be an important turning point in thawing international relations and nudging Russia back to cooperating with Saudi Arabia and the rest of the Organization of the Petroleum Exporting Countries and its partners. However, there are no details available of what exactly was discussed on the call. If Russia started this price war to get US sanctions removed, that needed to be the main agenda item to get conversations moving. We eagerly await any further news on this front.

 

China gradually returning to normalcy

30 Mar 2020

While the rest of the world steps up efforts to contain the spread of the COVID-19 pandemic, China is on a path to recovery as it shifts its priority to normalising activities. Investors are starting to pay closer attention to Chinese equities. The Shanghai Shenzhen CSI 300 Index, which tracks Chinese stocks, has remained relatively resilient compared to the drawdowns in equities observed in other major markets. The People’s Bank of China has also not followed other major central banks in cutting interest rates at its monetary policy meeting on March 20. Chinese equity markets rose in lockstep with global equity markets last week.

European stocks stage comeback despite economic challenges

30 Mar 2020

After four weeks of consecutive losses, European shares rose over the week buoyed by unprecedented economic stimulus measures in Europe and the US despite the economic data remaining weak. Eurozone business activity in March suffered a sharp dip owing to the intensification of the coronavirus outbreak. The composite index of services and manufacturing posted the largest monthly fall since 1998. Demand for goods and services saw a sharp decline while supply disruptions held back production. Jobs were cut at the fastest rate since mid-2009 as companies shuttered and a large part of the economy was shut down. IHS Markit said the data indicated that GDP would contract at a quarterly rate of about 2%. Policy response in Europe includes European Union finance ministers suspending the bloc’s deficit rules so that governments could increase spending to protect their economies. Also, the European Central Bank has removed some of the self-imposed limits on its 750bn of asset purchases to support the economy.

 

RESOURCES & TOOLS

 

Browse through our educational content and simulator to understand more how Short & Leveraged products work, and what are the latest trends in the industry. 


SHORT & LEVERAGED ETP SMART FAQ

Ask us anything about Short & Leveraged ETPs through our S&L ETP Smart FAQ search.

ANIMATED INTRODUCTION TO SHORT & LEVERAGED ETPS

Watch our short, animated video for a quick introduction to S&L ETPs

GUIDE TO SHORT & LEVERAGED ETPS

Access our Guide to Short and Leveraged ETPs to understand more of the risks and benefits of S&L ETPs and how they may be used in a portfolio

S&L ETP MONTHLY FLOW

See the latest trends in the S&L ETP industry through our Monthly S&L ETP Flows report.

SHORT & LEVERAGED ETP SIMULATOR

Use our short & leveraged ETP simulator to model returns of a theoretical short & leveraged ETP across different market scenarios.

Important information

 

Short & Leveraged Exchange-Traded Products are only intended for investors who understand the risks involved in investing in a product with short and/or leveraged exposure and who intend to invest on a short-term basis. Any investment in short and/or leveraged products should be monitored on a regular basis (as frequently as daily) to ensure consistency with your investment strategy. You should understand that investments in short and/or leveraged exchange-traded products held for a period of longer than one day may not provide returns equivalent to the return from the relevant unleveraged investment multiplied by the relevant leverage factor. Potential losses in short and/or leveraged exchange-traded products may be magnified in comparison to investments that do not incorporate these strategies. Please refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in short and/or leveraged exchange-traded products. You should consult an independent investment adviser prior to making an investment in short and/or leveraged exchange-traded products in order to determine suitability to your circumstances.