Boost ETPs climb to number 1 place on Borsa’s ETC/ETN segment of Borsa Italiana
Tuesday 23rd June '15
• Boost, Europe’s specialist Short and Leverage ETP (S&L) provider, has been consistently gaining market share on Borsa Italiana’s ETFPlus market and has obtained a record 53% share of short & leveraged ETPs turnovers and a 45% market share overall
• Boost’s S&L natural gas ETCs traded three times as much as any other issuer’s, and its S&L oil ETCs traded 67% more than any other issuer
• In equities, Boost obtained a 68% market share, with Boost S&L ETPs on the FTSE MIB, DAX and the EURO STOXX 50 getting more than twice the volumes of the competition
• Boost had four of the top five traded ETPs on Borsa Italiana’s ETFPlus last week
Milan, Tuesday 23 June 2015: WisdomTree Europe, an exchange traded fund (“ETF”) and exchange traded product (“ETP”) sponsor, and specialist in short and leverage (S&L) ETPs through the Boost ETP product range continues to increase its market share in Italy. Boost’s market share on Borsa Italiana’s ETFPlus market reached a 53% share of S&L ETP turnover and a 45% market share overall.
Trading volumes in Boost’s ETPs on Borsa Italiana have been on a clear growth trend, more than tripling year-to-date. Furthermore, out of the top 5 most traded ETPs last week, four were Boost’s, and Boost ranked number 1 in overall contracts traded. Across London, Italy and Germany exchanges Boost ETPs have increased trading month on month since the start of the year, to nearly €2.5bn notional turnover this past May. Boost’s Assets under Management (AUM) have also risen 289% in the past year and hit a record of €365m 2 in June.
Boost’s leading ETPs have become established as the most liquid S&L ETPs on Borsa’s ETFPlus market. Last week Boost’s S&L natural gas ETCs traded €63m, three times as much as any other issuer’s products, while Boost’s S&L oil ETCs traded €77m, 67% more than any other issuer. In equities, Boost S&L ETPs on the FTSE MIB, DAX and the EURO STOXX 50 enjoyed more than twice the volumes of the competition.
Nik Bienkowski, Co-CEO of WisdomTree Europe, commented:
“Boost entered the Italian market in October 2013. Since then, Boost has listed 41 S&L ETPs on Borsa covering equities, commodities, fixed income and FX. We have grown our AUM 289% over the past year while trading volumes have risen 537%, which is very impressive. It clearly shows that investors have a strong appetite for robust and transparent short & leveraged investment vehicles. To gain over 45% market share in the Borsa Italiana ETC/ETP segment in less than two years from launch is nothing short of spectacular.”
Boost has experienced particularly good traction with its S&L oil and natural gas ETPs, which are the most liquid S&L ETCs in Europe for trading the commodities. Viktor Nossek, Director of Research for WisdomTree Europe, had this to say:
“As the macro uncertainty continues, energy commodities will likely continue to be less directional. There are signs of strength for oil demand coming from economic growth in the US and Eurozone gathering pace, however concerns over oil supply persist with OPEC maintaining record high levels of production. Under such a directionless path for oil, leveraged positioning may be beneficial for short term investors seeking extra returns opportunistically. In the natural gas market, the hot US weather and flat supply underpin the recent rise in natural gas prices. US gas consumption has continued to increase since the spring and this week rose by 3.1% while supply was essentially flat this week. The range at which natural gas has been trading since January, between a $2.5 and $3/MMbtu, is likely to persist without a clear direction. Switching between bullish and bearish positions over short holding periods is likely the best strategy to opportunistically position around natural gas.”
Boost’s growth has been driven by product innovation and a focus on proactively educating investors about the benefits and risks of using S&L ETPs. The many different investment strategies that investors can employ also add to the usefulness of the product. Boost now offers ETPs covering all the major indices across equities, commodities, fixed income and currencies. In total, Boost ETP’s product range totals of 110 listings on Borsa Italiana, the London Stock Exchange, and Germany’s Xetra.
About WisdomTree Europe Ltd.
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe, including WisdomTree Europe Ltd based in London, is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. Through WisdomTree Europe Ltd, it sponsors WisdomTree UCITS ETFs and BOOST short and leverage ETPs. WisdomTree currently has approximately $62 billion (as of 18 June 2015) in assets under management globally. For more information, please visit www.wisdomtree.com.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
BOOST ETPs help expand the investment horizons of investors and allow them to execute a wide variety of strategies which include:
• Leverage the daily returns of an investment for the same capital as a non-leveraged trade
• Hedge existing positions in one simple trade
• Use a long or short strategy to take advantage of any short term rises or falls in the market, especially in a sideways trending market
• Pair trading to take advantage of undervalued assets
• Shorting the market efficiently and cheaply without having to arrange and finance complex stock borrowing positions
Similar to Exchange Traded Funds (ETFs), BOOST ETPs are liquid, accessible and simple. BOOST ETPs can be created and redeemed on a continuous basis by market makers, matching the tremendous liquidity of the underlying markets and can be traded by investors on a regulated exchange in the same way as any equity. BOOST ETPs provide accurate and transparent leveraged and short exposure to recognised benchmarks in a single trade. In addition, BOOST leveraged and short ETPs require no borrowing of stock or funds to gain the relevant exposure. BOOST ETPs are simply priced off transparent indices published by world class index providers.
BOOST ETPs are backed by robust risk management where (i) depending on the credit rating of BOOST’s counterparties, the mix of sovereign bonds held in the posted collateral will increase, and (ii) no cash or collateral will be delivered by BOOST to a counterparty unless BOOST has received payment first.
BOOST ETP's key features include:
• Independence - BOOST is independent from any investment bank, swap provider, market maker, trustee or custodian
• Best of breed – BOOST’s founders have over 25 years of experience in the ETP market. With this experience, plus the wealth of experience provided by BOOST’s world class service providers, investors are able to enjoy efficient products with liquidity, strong counterparty risk management and relatively low costs
• Transparency – BOOST discloses all fees, collateral holdings and details on its website each day
• Innovative and nimble - BOOST aims to be a leader in innovation, as evidenced by the ETPs issued, and the product development and market research behind the products
• Focused and specialised - BOOST's strategy differs from the existing ETP issuers by not focusing on being everything to everyone
• Educational - BOOST focuses on providing all the educational and thought leadership tools needed by investors
This communication has been provided by WisdomTree Europe Ltd which is an appointed representative of Mirabella Financial Services LLP which is authorised and regulated by the Financial Conduct Authority.
The products discussed in this document are issued by BOOST Issuer PLC (the “Issuer”) under a Prospectus approved by the Central Bank of Ireland as having been drawn up in accordance with the Directive 2003/71/EC. The Prospectus has been passported from Ireland into the United Kingdom and is available on the websites of the Central Bank of Ireland and the Issuer. Please read the Prospectus before you invest in any Exchange Traded Products (“ETPs”). Neither the Issuer nor BOOST ETP LLP is acting for you in any way in relation to the investment to which this communication relates, or providing investment advice to you. The information is not an offer to buy or sell or solicitation of an offer to buy or sell any security or investment. You are advised to seek your own independent legal, investment and tax or other advice as you see fit.
The value of an investment in ETPs may go down as well as up and past performance is not a reliable indicator of future performance. An investment in ETPs is dependent on the performance of the underlying index, less costs, but it is not expected to match that performance precisely. ETPs involve numerous risks including among others, general market risks relating to the relevant underlying index, credit risks on the provider of index swaps utilised in the ETP, exchange rate risks, interest rate risks, inflationary risks, liquidity risks and legal and regulatory risks.
ETPs offering daily leveraged or daily short exposures (“Leveraged ETPs”) are products which feature specific risks that prospective investors should understand before investing in them. Higher volatility of the underlying indices and holding periods longer than a day may have an adverse impact on the performance of Leveraged ETPs. As such, Leveraged ETPs are intended for financially sophisticated investors who wish to take a short term view on the underlying indices. As a consequence, BOOST ETP LLP is not promoting or marketing BOOST ETPs to Retail Clients. Investors should refer to the section entitled "Risk Factors" and “Economic Overview of the ETP Securities” in the Prospectus for further details of these and other risks associated with an investment in Leveraged ETPs and consult their financial advisors as needed. This marketing information is intended for professional clients & sophisticated investors (as defined in the glossary of the FCA Handbook) only.
This marketing information is derived from information generally available to the public from sources believed to be reliable although BOOST ETP LLP does not warrant the accuracy or completeness of such information. All registered trademarks referred to herein have been licensed for use. None of the products discussed above are sponsored, endorsed, sold or promoted by any registered trademark owner and such owners make no representation or warranty regarding the advisability on dealing in any of the ETPs.