BOOST AUM Passes $100 Million Landmark
Tuesday 29th April '14
- The news comes on the heels of BOOST’s acquisition 10 days ago by the fifth largest and independent US ETF issuer, WisdomTree
- Boost ETP’s AUM has risen 140% since the beginning of the year, matched by rising trading volumes and improving spreads, with Boost’s ETPs trading over $200 million in March
- AUM in all short & leveraged ETPs globally reached a record $62 billion at the start of April, following a month of net inflows, with turnovers reaching a 3 year high of $200 billion
“BOOST’s AUM is rising as we see investors asking not only for tactical tools to express their directional view, but also for effective hedging which allows them to preserve capital. BOOST’s products traded over $200 million in March, with tightened spreads and increased order flow across our product range. Investors are showing they understand the versatility of short & leveraged ETPs, and how to use them to add value in any market environment.”
Since the start of 2014, BOOST ETP has seen $61 million of net inflows. While inflows into BOOST’s equity ETPs ($20 million) have been mixed into both S&L ETPs, inflows into BOOST’s ETCs ($41 million) have not been divided. ETPs providing short exposure to natural gas (exchange tickers 3NGS & 2NGS), long exposure to silver (3SIL & 2SIL) and long exposure to oil (3OIL) have seen overwhelmingly more inflows than the opposite exposures. With $28 million of net inflows YTD, Boost Natural Gas 3x Short Daily ETP (3NGS) received nearly half of BOOST ETP’s total inflow in 2014.
BOOSTs Head of Research, Viktor Nossek, commented on the most recent trends:
“The latest push over the $100 million AUM barrier comes as our investors reiterate their bearishness with respect to natural gas. As the colder than usual temperatures stretch for longer than expected in the US, we have seen our investors position themselves for a fall in natural gas prices with flows into Boost Natural Gas 3x Short Daily ETP (3NGS) and out of Boost Natural Gas 3x Leverage Daily ETP (3NGL). This is consistent with what we have been seeing in short & leveraged ETPs globally since March 2014, and it will be interesting to see how the commodity fares over the coming month.”
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 / ETP Advisor Tool Kit.