- Boost Euro STOXX 50 3x Leverage Daily ETP (3EUL) was the best performing ETP listed on the LSE in September, with a 17.7% return
- European equities outperformed in September as investors preferred European equities with the US debt ceiling at an impasse
- Global Short and Leveraged ETP assets have risen by $6.8bn (15%) in the first eight months of 2013 to $51.1bn, as investors continue to increase their usage of Short and Leveraged (S&L) ETPs
- Boost ETP offers a range of Short and Leverage equity ETPs in Europe with 17 different equity ETPs covering UK, US, Europe, Germany and Japan
Boost ETP, the award winning and independent exchange traded product (ETP) provider, is proud to announce that Euro STOXX 50 3x Leverage Daily ETP (3EUL) was the top performing ETP listed on the London Stock Exchange (LSE) in September. Boost LevDax 3x Daily ETP (3DEL) was the second top performing ETP and Boost TOPIX 2x Leverage Daily ETP was number five:
Rank by GBP LSE code ETP Name Return in GBP
1 3EUL BOOST EURO STOXX 50 3X LEVERAGE DAILY ETP 17.7%
2 3DEL BOOST LEVDAX 3X DAILY ETP 16.3%
5 2JAL BOOST TOPIX 2X LEVERAGE DAILY ETP 12.5%
* Source: Delta One Solutions to 30 September 2013, and FX rates from Bloomberg
September was marked by the Fed’s announcement to delay the widely anticipated tapering of monetary stimulus. Taken by surprise, the response on equity markets was bullish, with the DJ EuroSTOXX 50 and the DAX 30 rising 6.3% and 6.0% (in EUR) respectively during the month. US equities, having outperformed main European benchmarks this year, rallied less. The Russell 1000 and NASDAQ indices ended up 6.2% and 4.7%, respectively (in USD terms). However, the devaluation of the dollar triggered by the QE tapering delay resulted in the indices ending the month down by 1.5% in GBP terms. Following the news on 18 September that Tokyo won hosting rights for the 2020 Olympic Games, the major infrastructure upgrades required fuelled speculation that PM Abe’s structural reform and fiscal stimulus agenda will succeed. While losing momentum towards the end of the month, The TOPIX was up 8.0% (in Yen). Source: Boost ETP & Bloomberg.
The performance statistics indicate the value Short and Leverage (“S&L”) ETPs can bring to investors, with 3x S&L ETPs having been first introduced to the market last December. Investors have clearly been responding to the availability of new products as evidenced by the increasing AUM and trading volumes in Boost ETPs. S&L ETPs are attractive to investors as they provide up to 3x or -3x the exposure through one simple trade, negating the need for complex documentation or use of derivatives.
Recently, trading volumes of Boost ETPs have risen dramatically with increased interest in products providing exposure to equities (short EURO STOXX 50, short and leverage FTSE 100 and FTSE 250), and commodities (short oil, short copper, and leverage gold).
Nik Bienkowski, Co-CEO of Boost ETP commented:
“Equities continued their rise in September with Boost Euro STOXX 50 3x Leverage Daily ETP (3EUL) returning 20.1% (in EUR) for the month. The introduction of the Boost range of 3x short and 3x leverage ETPs / ETFs was a first in Europe and the UK, and is proving to be a useful tool for investors to hedge risk or express a view with less capital. Boost currently offers 17 different equity ETPs covering UK, US, Europe, Germany and Japan.
“Global Short and Leveraged ETP assets have risen by $6.8bn (15%) in the first eight months of 2013 to $51.1bn, as investors continue to increase their usage of Short and Leveraged (S&L) ETPs. Demand for S&L ETPs was also supported by Boost ETPs’ AUM, having doubled between June and end of September. In total, there is $35.1bn of assets held in S&L equity ETPs globally.”
Investors are increasingly using S&L ETPs for a variety of reasons. There is wider product availability, greater product knowledge from improved educational resources and increased demand for hedging tools and leveraged instruments available. There is also a move towards independent, transparent and exchange traded instruments such as ETFs and ETPs. As a result of this increased usage and interest in S&L ETPs, Boost recently launched a monthly Global Short & Leverage ETF / ETP Report and a Short & Leverage ETF
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