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PRESS ROOM

BOOST’s Natural Gas 3x Leverage ETC (3NGL) top performing ETP on Borsa Italiana in November

Wednesday 11th December '13

  • Boost Natural Gas 3x Leverage Daily ETP was the best performing ETP listed on the Borsa Italiana in November, with a 24.4% (EUR) return
  • Globally, investors in Short & Leveraged (S&L) ETPs have become more bullish on natural gas in November, with short natural gas ETPs seeing net outflows of €98 million and leveraged natural gas ETPs net inflows of €12 million
  • Underscoring the bullish sentiment in natural gas are low gas inventory levels together with the winter season’s demand for energy. Stronger US economic growth and jobs data this month have also provided support for energy
  • Turnover in S&L ETPs on Borsa Italiana totalled €1.5bn in November, a 14% increase YTD. The total global AUM of S&L ETPs at the end of November was €37.4 billion. YTD, global S&L ETP AUM is up €4.7 billion or 15% 
  • Due to rising demand, BOOST listed Italy’s first 3x Short and 3x Leverage Silver ETCs on Borsa Italiana on 27 November

 

BOOST ETP, the award winning and independent exchange traded product (ETP) provider is proud to announce that Boost Natural Gas 3x Leverage Daily ETP (3NGL) was the top performing ETP listed on Borsa Italiana in November, returning 24.4% [1]  in EUR. 
 
Globally, investors in short & leveraged ETPs became more bullish on natural gas in November, with short natural gas ETPs seeing net outflows of €98 million and leveraged natural gas ETPs experiencing net inflows of €12 million. Since April 2013, leveraged natural gas ETPs experienced inflows of €800 million while short ETPs saw outflows of €423 million [2]. 
 
Underscoring the bullish sentiment in natural gas are low gas inventory levels together with the winter season’s demand for energy. Stronger US economic growth and jobs data this month have also provided support for energy. Natural gas is up 18% YTD, and has been one of the best performing commodities, outperforming WTI oil by 12%, copper by 29% and gold by 54% [3]. 
 
Over the past three months, it is equities that have been the top performing assets, with November marked by upbeat sentiment in risk assets driving equity markets to record highs:
 
ETP ISIN Ticker 3 month performance (EUR)*
Boost LevDAX 3x Daily ETP IE00B878KX55 3DEL 54.0%
Boost FTSE MIB 3x Leverage Daily ETP ** IE00B8NB3063 3ITL 46.3%
Boost EURO STOXX 50 3x Leverage Daily ETP IE00B7SD4R47 3EUL 45.7%

 

*Three-month returns based on NAVs from 30/08/13 - 29/11/13
**3ITL three-month returns using backtested NAVs including fees from 30/08/13 - 28/10/13 and actual NAVs from 29/10/13 to 29/11/13
Source: Bloomberg and Boost ETP LLP

The performance statistics indicate the value that S&L ETPs can bring to investors, with 3x S&L ETPs having been first introduced by Boost to Borsa Italiana on 31 October 2013. Investors have clearly been responding to the availability of new products as evidenced by the increasing AUM and trading volumes in BOOST ETPs. S&L ETPs are attractive to investors as they provide up to 3x or -3x the exposure through one simple trade, negating the need for complex documentation or use of derivatives. 

Turnover in S&L ETPs on Borsa Italiana totalled €1.5bn in November, a 14% increase since December 2012. Due to the success of BOOST 3x S&L ETPs in Italy, BOOST recently listed 3x short and 3x leverage ETPs tracking silver:

Product Name ISIN Ticker
Boost Silver 3x Short Daily ETP IE00B8JG1787 3SIS
Boost Silver 3x Leverage Daily ETP IE00B7XD2195 3SIL

 

 
Nik Bienkowski, Co-CEO of BOOST ETP commented:
 
“November was marked by upbeat sentiment in risk assets driving equity markets to record highs and providing support for energy prices, with Boost Natural Gas 3x Leverage Daily ETP (3NGL) returning 24.6% (in EUR) and Boost LevDAX 3x Daily ETP (3DEL) returning 12.4% over the month. The introduction of the BOOST range of 3x short and 3x leverage ETPs on 31st of October this year was a first in Italy, and is proving to be a useful tool for investors to hedge risk or express a view with less capital. 
 
“Global S&L ETP assets have risen by €4.7bn (15%) in the first 11 months of 2013 to €37.4bn, as investors continue to increase their usage of S&L ETPs. Demand for S&L ETPs was also supported by BOOST ETPs’ AUM, having more than doubled in the second half of 2013. In total, there is €25.1bn of assets held in S&L equity ETPs and €3bn of assets held in S&L commodity ETCs globally.” 
 
Investors are increasingly using S&L ETPs for a variety of reasons. There is wider product availability, greater product knowledge from improved educational resources and increased demand for hedging tools and leveraged instruments available. There is also a move towards independent, transparent and exchange traded instruments such as ETFs and ETPs. As a result of this increased usage and interest in S&L ETPs, Boost recently launched a monthly Global Short & Leverage ETF / ETP Report and a Short & Leverage ETF / ETP Advisor Tool Kit.
 
BOOST specialises in providing sophisticated investors with short and leveraged ETPs which give investors instant exposure to liquid underlying markets in one single trade. Investors can now get exposure to leveraged returns without having to borrow the additional funds to gain the additional long exposure, or the need to borrow the underlying shares and then sell those shares in order to short the market. BOOST will be providing significant educational support to the investment community with the aim of ensuring investors can maximise their usage of the products.

The new ETPs will help expand the investment horizons of investors and will allow them to execute a wide variety of strategies which will 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
  • Use in pairs to trade and take advantage of undervalued assets
  • Get short 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 tracked, and can be traded by investors on a regulated Exchange in the same way as any equity. BOOST ETPs will provide accurate and transparent leveraged and short exposure to recognised benchmarks in a single trade. In addition, BOOST S&L 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 will be backed by a robust risk management system where (i) depending on the credit rating of BOOST's counterparties, the mix of sovereign bonds held in the posted collateral will slowly increase, and (ii) no cash or collateral will be delivered by BOOST to a counterparty unless BOOST has received payment first.

[1] Source: Borsa Italiana

[2] Source: Boost Global Short & Leveraged ETF/ETP Report, Bloomberg. As of 31/11/13 
[3] Returns are given in USD. Source: Bloomberg, As of 4/12/13