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
|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%|
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:
|Boost Silver 3x Short Daily ETP||IE00B8JG1787||3SIS|
|Boost Silver 3x Leverage Daily ETP||IE00B7XD2195||3SIL|
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.
 Source: Borsa Italiana