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PRESS ROOM

WisdomTree Issues Its First Un-leveraged Exchange Traded Commodities on Deutsche Börse

Tuesday 30th June '15

  • The new ETCs track the core commodities of oil, gold, and natural gas.
  • On average Boost offers the most liquid oil, natural gas, and gold short & leveraged ETC platforms in Europe.
  • Two new Euro STOXX Banks Equity ETPs and two Euro US$ currency ETPs also listed today.

Frankfurt, 30 June 2015: WisdomTree Europe, an Exchange Traded Fund (“ETF”) and exchange traded product (“ETP”) sponsor, and specialist in short & leverage (“S&L”) ETPs through the Boost ETP product range, is proud to announce the launch its first un-leveraged Exchange Traded Commodities (“ETCs”) on Deutsche Börse Xetra platform, as well as two further Equity and two currency ETPs.

 

Viktor Nossek, Director of Research for WisdomTree Europe, had this to comment:

“Equity markets in Europe remain subject to a politically charged environment as the ‘on-off’ negotiations between Greece and the Troika continue. Until a final deal is ironed out, if at all, the heightened uncertainty is expected to drive allocations into defensive sectors as investors continue to price-in a high probability of Greece exiting the EMU (“Grexit”). Eurozone bank stocks are likely to succumb the most to increased volatility.

With the euro remaining volatile and directionless over the last month on the back of ‘Grexit’ speculation, the near term outlook appears unlikely to change much. Investors may consider positioning tactically around the currency by switching between leveraged and short ETPs tracking the euro-dollar exchange rate as the euro has shown occasions of both bullish and bearish momentum relative to the dollar.

The path of US natural gas and crude oil prices ahead is likely to be volatile in the short term against an uncertain global macro backdrop. In the longer term, commodities may regain strength as uncertainty in the Middle East ebbs, emerging markets deleverage, and early signs of Europe recovering translate into a more upbeat sentiment on energy commodities. Boost’s new unleveraged ETCs offer investors the chance to take a long term view that the price of these commodities will rise.”

Hector McNeil, Co-CEO of WisdomTree Europe, had this to say about the launch: 

“On the back of record demand for oil ETCs, Boost is offering four new unleveraged ETCs, two of which are tracking the world’s the most liquid oil benchmarks of WTI and Brent. The introduction of the four new unleveraged ETCs reinforces Boost’s commitment to German investors, and Boost hopes to attract new investors as well as cater to existing investors with cost-effective ETCs for longer term investments.

The newly listed Euro STOXX Banks ETPs offer the ability to manage risk in a volatile environment in a capital efficient manner, whilst the Euro / US$ ETPs can be used as hedging tool for global portfolios. These new launches provide German investors with more choice when it comes to risk management and active trading strategies”

Boost’s growth has been driven by product innovation and a focus on proactively educating investors about the benefits and risks of using S&L ETPs. The many different investment strategies that investors can employ also add to the usefulness of the Boost platform. Boost now has 108 ETPs & ETCs registered across four exchanges, covering the world’s major benchmarks in equities, commodities, fixed income, and currencies. 

Notes to Editor

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 $63.6 billion in assets under management globally (as of 24 June 2015). For more information, please visit www.wisdomtree.com. 

WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide. 

  • 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 investors benefit from efficient products with liquidity, strong counterparty risk management and relatively low costs as well as the wealth of experience provided by Boost’s management and world class service providers
  • 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 

www.boostetp.com 

Disclaimer 

WisdomTree Europe Ltd is an appointed representative of Mirabella Financial Services LLP which is authorised and regulated by the Financial Conduct Authority. 

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, WisdomTree Europe Ltd 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. Within the United Kingdom, this document is only made available to professional clients and eligible counterparties as defined by the FCA. Under no circumstances should this document be forwarded to anyone in the United Kingdom who is not a professional client or eligible counterparty as defined by the FCA. 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 WisdomTree Europe Ltd 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.