Boost launches two new Brent Oil ETCs on Borsa Italiana
Monday 19th October '15
- Italy’s first 3x Short and 3x Leverage Brent Oil ETPs
- 3x Brent oil added to Boost’s existing platform of 7 oil ETCs, making a total of 9 oil ETCs
- Boost WTI Oil 3x Leverage Daily ETP (3OIL) is Europe’s most liquid oil ETC, with $193m of AUM and $413m of trading each month (or $1.2bn notional traded volume)
- Boost further strengthens its market leading position in short & leveraged ETPs on Borsa Italiana ETFplus ETC Segment
Milan, 19 October 2015: WisdomTree Europe, an exchange traded fund (“ETF”) and exchange traded product (“ETP”) sponsor is proud to announce that it has listed two new 3x S&L Brent Oil ETPs on Borsa Italiana.
Boost Brent Oil 3x Leverage Daily ETP
Boost Brent Oil 3x Short Daily ETP
The new ETPs come on the back of increasing demand for Boost’s Short & Leveraged ETPs. At the beginning of October, ETPs issued by Boost reached close to $500 million in AUM and these oil new ETPs add even more depth to Boost ETP’s already comprehensive product list. In the last week of September, Boost ETPs had almost 56% market share in the ETC Section of the ETFplus on the Borsa Italiana.
Boost’s new S&L Brent Oil ETPs will track the NASDAQ Commodity Brent Crude Oil ER index, giving exposure to the returns which reflect an investment in front-month Brent crude futures, plus the interest revenue earned on the collateralised amount.
The NASDAQ Commodity Brent Crude Oil ER Index is designed to reflect an investment in front-month Brent Crude Oil commodity futures contracts, rolling monthly out of the expiring front-month contract and into the next front-month contract. Even though the index measures excess return performance based on the futures price performance and the roll return, the ETC provides a total return performance which also includes the interest revenue on the collateralised amount.
Viktor Nossek, Director of Research at WisdomTree Europe, commented:
“These new products provide investors with a wider opportunity of short term tactical and hedging opportunities in one of the key investment themes in today’s markets. The ability to manage one’s exposure to Brent Crude Oil has become increasingly valuable amidst repeated occurrences of heightened uncertainty surrounding the outlook for crude oil. Aside from seasonality, the volatility in Brent Crude Oil has increasingly been led by geopolitical risks in the Middle East and fears of China’s slowdown turning into a hard landing. The addition of 3x S&L Brent Oil to our existing unleveraged Brent Oil and WTI Oil ETPs gives clients more choice when focusing on this key area within the commodity market.”
Nik Bienkowski, Co-CEO of WisdomTree Europe commented:
“Boost as an issuer is delighted to be at the forefront of meeting demand from clients to extend our already market leading range of ETPs in the Italian market. Boost now has a total of 9 oil ETPs with leverages ranging from +1x to +3x and -1x to -3x. Boost’s 3x Leverage Crude Oil ETP (3OIL) has $193m in AUM and $413m in monthly traded volume, making 3OIL the most liquid oil ETC in Europe.”
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 125 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 $56.4 billion (as of 08 October 2015). 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.
 Source: WisdomTree Europe. AUM as of 8/10/2015