Boost launches Italy’s first 5x short Fixed Income ETPs on Borsa Italiana
Wednesday 15th July '15
In addition to this, Boost launches Italy’s first 4x short and 4x leverage FX ETPs
London, 15 July 2015: WisdomTree Europe, an exchange traded fund (“ETF”) and exchange traded product (“ETP”) sponsor is proud to announce that it has listed Italy’s first ever range of 5x short fixed income ETPs, as well as Italy’s first ever 4x short & 4x leverage (S&L) FX ETPs on Borsa Italiana.
The new ETPs come on the back of increasing demand for S&L ETPs. At the end of June, ETPs issued by Boost reached $383 million in AUM, with new record monthly turnover of $1.2 billion in June. The Boost US Treasuries 10Y 3x Short DailyETP (3TYS), is currently Boost’s largest short ETP with $25m in AUM as at 13 July 2015, with 99% of Boost’s investors being short and 1% long. The launch of 4x FX ETPs comes on the back of strong trading volumes of S&L FX ETPs on Borsa Italiana where EUR-USD ETPs have consistently ranked in the top 10 trading ETPs every month the year to date. Boost’s FX investors are currently 83% long USD and 17% short USD versus euro.
The new fixed income ETPs will track indices giving exposure to the returns from holding 10Y US Treasury futures, 10Y BTP (Italian Government) futures and 10Y Bund (German Government) futures. There is US$6.1 billion of S&L debt ETPs tracking US Treasuries globally, with 97% of this currently short. German and Italian government debt are the most popular S&L European debt ETPs, with US$1.4 billion and US$308 million in AUM as at 30 June 2015, respectively.
The 5x short fixed income ETPs are designed to return 5x the daily movement of the relevant benchmark index. For example, if the BNP Paribas Long Term BTP Future Index falls by 1% on a day, then "5BTS" will rise by 5% on that day (less fees and adjustments). Conversely, if the BNP Paribas Long Term BTP Future Index rises by 1% on a day, then "5BTS" will fall by 5% on that day.
The Long USD Short EUR and Short USD Long EUR ETPs with 4x leverage factors complement Boost’s existing 5x EUR/USD ETPs, giving investors more choice to position bullishly or bearishly on the U.S. dollar relative to the euro.
BOOST’s S&L ETP platform now covers the world’s major asset classes, which include equities, fixed income, currencies, and commodities. This brings BOOST ETP’s product range to a total of 95 listings on Borsa Italiana, the London Stock Exchange, and Germany’s Xetra.  Source: Bloomberg and Boost ETP, A WisdomTree Company Short & Leveraged ETFs/ETPs Global Flows Report, 30 November 2014.
Nik Bienkowski, Co-CEO of WisdomTree Europe commented:
"We believe that 5x short Fixed Income ETPs are very useful additions to Italy’s ETP market and complete the existing Boost range of 3x short Fixed Income ETPs launched back in August 2014. The Boost US Treasuries 10Y 3x Short Daily ETP (3TYS) is currently Boost’s largest short ETP with $25m in AUM as at 13 July 2015, with 99% of Boost’s investors being short and 1% long. Relative to unleveraged exposures, investors using 5x short ETPs can commit less capital to obtain the same exposure to the underlying or commit the same capital and amplify the exposure. Boost now offers S&L ETPs covering equities, fixed income, FX and commodities. In the 12 month period from June.”
Viktor Nossek, Director of Research at WisdomTree Europe, commented: “The decision by the ECB to implement its large-scale asset purchase program (a.k.a. QE) this year has helped to artificially suppress long-dated bond yields. This coming at a time just when uncertainty underpinned by rising deflation risks in the Eurozone threatened to undermine the stability of indebted economies. Now, with better inflation data coming through in Italy and core Eurozone but Greece causing renewed default fears of indebted members, Eurozone’s bond markets have recently succumbed to volatility, putting even German Bunds, considered the safest of safe havens under pressure. This has sparked a reversal in the trend of falling bond yields, and opening up opportunities for investors to opportunistically position bearishly on Italian BTPs and German Bunds.”
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 $62.5 billion in assets under management globally (as of 13 July). 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:
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- Hedge existing positions in one simple trade ·
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BOOST ETP's key features include:
- Independence - BOOST is independent from any investment bank, swap provider, market maker, trustee or custodian
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