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PRESS ROOM

BOOST launches Europe’s first 3x Short and 3x Leverage Banks ETPs on Borsa Italiana as trading volumes reach $1bn

Wednesday 10th December '14

  • Europe’s first 3x Leveraged and 3x Short Banks ETPs listed on Borsa Italiana
  • 5x Leverage EUR-USD and 5x Short EUR-USD ETPs also listed on Borsa Italiana
  • BOOST ETP’s short and leverage platform hits new AUM record as Boost expands into FX, offering now covers equities, commodities, fixed income and FX
  • Trading volumes also hit record high with $1bn (1) notional trading volume in November

BOOST ETP, A WisdomTree Company and Europe’s award winning, specialist Short and Leverage (S&L) Exchange Traded Product (ETP) provider, is proud to announce that it has listed Europe’s first ever 3x short and leverage Euro STOXX Banks ETPs. In addition to these two ETPs, Boost has also launched 5x short and 5x leverage EUR-USD ETPs. BOOST’s ETP platform now covers 47 products offering exposure to equities, commodities, fixed income and now FX.
 

Product Name Ticker
Boost Long USD Short EUR 5x Daily ETP 5USE
Boost Short USD Long EUR 5x Daily ETP 5EUS
Boost EURO STOXX Banks 3x Leverage Daily ETP 3BAL
Boost EURO STOXX Banks 3x Short Daily ETP 3BAS

 

BOOSTs S&L bank ETPs will track the EURO STOXX Banks Daily Triple Leverage Index and the EURO STOXX Banks Daily Triple Short Index. The EURO STOXX Bank indices are derived from broader EURO STOXX Index which includes companies across 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

Italian investors can now get leveraged and short exposure to the heart of Eurozone’s financial system, the policies and the news affecting it. Viktor Nossek, Director of Research of WisdomTree Europe, believes the new S&L banks ETPs provide investors particularly relevant opportunities at a time when Eurozone banks serve as the channel through which much of the EU’s policy is implemented. Potentially strengthening the banks could be the ECB’s quantitative easing program which is set to provide a cash injection to banks’ balance sheet, and take up for the cheap ECB loans (TLTROs) these banks distribute to the private which should accelerate given most major banks have now passed their stress test. Prospects for the banks sector ultimately hinge on how aggressively the ECB pursues its monetary stimulus plan to revive the Eurozone economy.
 
BOOST is also listing two additional new FX ETPs which offer 5x short & leveraged exposures to the Euro exchange rate vs. the dollar. Nik Bienkowski, Co-CEO of WisdomTree Europe, said: “With the addition of the two new ETPs covering the EUR-USD FX spot rate, BOOST now lists 96products covering the four major asset classes: equities, commodities, fixed income and currencies. The new launches underline BOOST’s commitment to providing a comprehensive product range as Europe’s specialist short & leveraged provider. We should be a one stop shop for investors who want to use their capital efficiently, hedge their exposure to market risk or express a bearish view on a market.”
 
BOOST’s new FX ETPs are designed to return 5x the daily change in the exchange rate between currency pairs. For example, if EUR strengthens versus the USD by 1% on a day, then Boost Short USD Long EUR 5x Daily ETP ("5EUS") will rise by 5% on that day (less fees and adjustments). Conversely, if EUR weakens versus the USD by 1% on a day, then "5EUS" will fall by 5% on that day (less fees and adjustments).
 
Nossek commented: “We feel that in the current environment, the 5x short & leveraged FX ETPs will prove useful tools for investors who are looking to hedge their position or express their view with respect to the EUR-USD FX rate. The Euro has been weakening against the dollar due to widening interest USD-EUR interest rate differential, fears regarding the stability of the weaker indebted economies in the face of deflation and growing political discord among EU members. However, the EC’s European wide investment plan, and an aggressive monetary policy stance taken by the ECB, may still give the Euro a boost. Boost’s new 5EUS product offers investors an opportunity to benefit from a strengthening EUR while using their capital efficiently. Investors who are bearish on the EUR may invest in 5USE.”
 
BOOST’s S&L ETP platform now covers the world’s major asset classes, which include equities, fixed income, commodities and FX.
 
This brings BOOST ETP’s product range to a total of 31 listings in Italy. 

(1) Source: Boost ETP. November exchange trading volumes were in excess of $375 million which is equivalent to approximately $1bn of notional trading volume after accounting for leverage factor