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.
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