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PRESS ROOM

BOOST’s Short & Leveraged ETPs are the LSE’s Five Best Performing ETPs in 2013 as Equities Soar to Record Highs and Precious Metals Tank

Tuesday 14th January '14

  • The five best performing ETPs/ETFs/ETCs in 2013 listed on the London Stock Exchange (LSE) were BOOST ETPs providing leveraged exposure to equities and short exposure to precious metals 
  • The top performing ETP on the LSE in 2013 was BOOST NASDAQ 100 3x Leverage Daily ETP (QQQ3), which returned 136.8%, and the second best performer was BOOST Russell 1000 3x Leverage Daily ETP (3USL), which returned 118.3% 
  • As increasing risk appetite drove investors into the rising equity market, safe haven assets such as gold and silver suffered; BOOST Gold 3x Short Daily ETP (3GOS) and BOOST Silver 3x Short Daily ETP (3SIS) gained 100.9% and 96.1% , respectively
  • Globally, investors continued to increase their usage of short & leveraged ETPs in 2013. Global S&L ETP assets rose by $10bn (22%) in 2013 to a record $54.8 billion 
BOOST ETP, the award winning and independent exchange traded product (ETP) provider is proud to announce that the five best performing ETPs on the London Stock Exchange (LSE) in 2013 were Boost’s ETPs. BOOST ETPs provide short & leveraged (S&L) exposure to equity and commodity markets.
Despite initial fears over the anticipated unwinding of monetary stimulus last summer, major equity benchmarks in the US, Europe and Japan attained new record levels towards the end of 2013. This catapulted BOOST NASDAQ 100 3x Leverage Daily ETP (QQQ3) and BOOST Russell 1000 3x Leverage Daily ETP (3USL) to the top of the LSE’s best performing ETPs list, with returns of 136.8% and 118.3% (respectively) in 2013. 
 

Source: Boost, Bloomberg, Bank of England. Returns represent change in NAV / official prices where available or exchange closing prices otherwise, between 31/12/2012 and 31/12/2013. Ranking of returns was done based on GBP returns, using Bank of England FX rates.

As rising risk appetite drove investors into the equity market, BOOST Gold 3x Short Daily ETP (3GOS) and BOOST Silver 3x Short Daily ETP (3SIS) allowed investors to profit from the sell-offs in gold and silver, which are viewed as safe haven assets. A resilient US economy and improving labour markets reinforced bearish sentiment in precious metals, with 3GOS returning 100.9% and 3SIS returning 96.1% in 2013, as gold and silver prices fell.

The performance statistics demonstrate the value S&L ETPs can bring to investors. 3x S&L ETPs were first introduced by BOOST ETP to the LSE in December 2012. Investors have clearly been responding to the availability of new products as evidenced by the increasing AUM and trading volumes in BOOST’s products. S&L ETPs are attractive to investors as they provide up to 3x or -3x the exposure through one simple trade. These levels of exposure allow investors to gain from rising as well as falling markets, thus negating the need for complex documentation or use of derivatives.   

Nik Bienkowski, Co-CEO of BOOST ETP commented:

“Globally, investors continue to increase their usage of short & leveraged ETPs. Global S&L ETP assets have risen by $10bn (22%) in 2013 to a record $54.8 billion. Demand for S&L ETPs was also reflected in BOOST ETP’s AUM having more than doubled in the second half of 2013. In total, there is $36.7bn of assets held in S&L equity ETPs and $3.7bn of assets held in S&L commodity ETCs globally.” 

“2013 was marked by upbeat sentiment in risk assets driving equity markets to record highs, with BOOST NASDAQ 100 3x Leverage Daily ETP (QQQ3) returning 136.8% and BOOST Russell 1000 3x Leverage Daily ETP (3USL) returning 118.3%. The introduction of BOOST’s range of 3x short and 3x leverage ETPs in December 2012 was a first in the UK and is proving to be a useful tool for investors to hedge risk or express a view with less capital.”


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.
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USD return based on NAVs / official prices. Source: Boost, Bloomberg
USD return based on NAVs / official prices. Source: Boost, Bloomberg
Source: BOOST Short & Leveraged ETFs/ETPs Global Report, Bloomberg
USD return based on NAVs / official prices. Source: Boost, Bloomberg