- Boost EURO STOXX 50 3x Short Daily ETP (3EUS) traded $57m notional value in one single trade, highlighting the liquidity of ETPs
- Trading volumes for BOOST ETPs continue to rise as investors seek transparent and robust products
- Global demand for Short and Leveraged ETPs outstrips unleveraged ETPs in 2013, as S&L trading volumes rise 71% and AUM rises 15%
- BOOST expands ETP platform by offering investors a wide selection of Gold, Silver, Natural Gas and UK equities (FTSE 100 and FTSE 250) through its product range
BOOST ETP, the award winning and independent exchange traded product (ETP) provider is experiencing rising investor demand for its robust and transparent Short & Leverage (S&L) ETPs. Last Friday, 26 July 2013, a single investor traded $19 million of Boost EURO STOXX 50 3x Short Daily ETP (3EUS)
which is the equivalent to a total notional exposure value of $57 million.
Over the past two weeks, up to Friday 26 July, 3EUL (Boost EURO STOXX 50 3x Leverage Daily ETP
) has risen 7.9%, outperforming other 3x leverage equity ETPs on the BOOST platform by at least 5.7%. Given recent US earnings news and the potential for Eurozone equity earnings to underperform in comparison, we believe this large short position executed using BOOST’s 3EUS on Friday was positioned for this news flow*.
Recently, trading volumes of BOOST ETPs have risen dramatically with increased interest in products providing exposure to short WTI, short EURO STOXX 50, leverage FTSE 250 and leverage FTSE 100.
Increased investor interest in the BOOST platform matches the rise in global S&L ETP volumes and assets under management (AUM). Global S&L ETP assets rose by $6.8bn (15%) in the first six months of 2013 to $50.9bn, as investors continue to increase usage of S&L ETPs. On-exchange traded volumes for S&L ETPs have also increased this year. Increasing from $114bn to $195bn per month, representing a 71% increase**.
As a result of this increased usage and interest in S&L ETPs, BOOST recently launched 16 new S&L ETPs, taking its platform to 36 ETPs today. The new launch included the world’s first FTSE 250 S&L ETPs, Europe’s first S&L Japanese equity ETPs tracking the TOPIX index, plus additional leverage factors (-1x, -2x and +2x) of existing products. BOOST now offers five different leverage factors on its most popular indices of FTSE 100 and Gold, including -3x, -2x, -1x, +2x and +3x providing more choice than any other ETP provider.
Nik Bienkowski, Co-CEO, commented:
“BOOST ETP has launched a platform of 36 short and leveraged ETPs providing a range of leverage factors to the world’s leading equity and commodity indices. With BOOST’s experience in the European ETP market, we work closely with our clients and service providers to deliver a world class, robust, transparent, independent, cost effective and liquid product. Last week’s $57 million notional trade to short European equities demonstrates this liquidity.
Growth of the Short and Leveraged ETP market has outpaced the growth of the overall ETP market by 10 percentage points this year, having grown to $51 billion. As a result of growing demand for transparent products, as well as growing demand for short and leveraged ETPs, BOOST ETP will continue to innovate and provide market leading solutions for investors. BOOST believes that independent ETP providers will continue to increase market share, and BOOST is poised to benefit from this growth.”
BOOST continues to work hard to introduce investor education tools to help grow the investor base adopting S&L ETPs. The most recent tools include the ‘ETF/ETP Adviser Tool Kit’, ‘S&L ETF/ETP Returns Simulator’ and a ‘Liquidity Explained
’ fact sheet.
* Source: Boost ETP Weekly Performance Report, 29 July 2013
** Source: June 2013 Boost ETP Global Short &Leverage ETF/ETP Report