Long USD Short EUR 5x Daily ETP
Boost Long USD Short EUR 5x Daily ETP is a fully collateralised, UCITS-eligible ETC. The ETC provides five times the daily performance of the BNP Paribas USD EUR FX Spot Index, which captures the movement in the FX spot rate and the interest rate differential between the Dollar and the Euro, plus the EONIA interest income earned on the collateralised amount.
For example, in case the Euro rises 1% against the Dollar in a day (the dollar depreciates against the Euro), then the ETC will fall by 5% on that day; however, if the Dollar rises by 1% against the Euro on a day (Euro depreciates against the Dollar), then the ETC will rise by 5% on that day, in both cases excluding fees and interest.
ETP RISK WARNING
The Boost Issuer Plc exchange traded products (ETPs) are only intended for investors who understand the associated risks. The short and/or leveraged products involve numerous risks including general market risks relating to the relevant underlying index, credit risks on the provider of index swaps utilised in the ETPs, exchange rate and interest risks, and for our Delta One products, swap counterparty risk. You should consult an investment adviser who can help determine whether or not the products are suitable for you.
The price of any Shares or the value of an investment in ETPs may go up or down and an investor may not get back the amount invested. Past performance is not a reliable indicator of future performance. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.
|Bloomberg Ticker||5USE IM|
|Index Bloomberg Ticker||BPFXEUSD|
|Index Name||BNP Paribas USD EUR FX Spot Index|
|Physical Assets||Yes (Collateral)|
|Replication Method||Fully Collaterised Swap|
|Further Legal and Tax Information|
|UK Fund Reporting Status||Yes|
|Annual Management Fee Rate||0.89%|
|Daily Swap Rate||0.00222%|
Listings & Codes
|Listings & Codes|
The above chart presents information about the difference between the daily market price for shares of the Fund and the Fund's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 p.m. eastern time for most Funds). The vertical axis of the chart shows the premium or discount expressed as a percentage of mid-point.
BNP PARIBAS USD EUR FX SPOT INDEX
The BNP Paribas USD EUR FX Spot Index replicates the performance of holding a long spot position in USD (the "Long Currency") against a short spot position in EUR (the "Short Currency"). The daily performance of the Index is determined by reference to these positions and is dependent on two components:
- The daily movement of the spot FX rate, which has a positive impact if the EUR depreciates against the USD and a negative impact if the EUR appreciates against the USD;
- The cost of financing the positions, which reflects the interest rate differential between the borrowing currency (EUR) and the Long Currency (USD).
The index is denominated in EUR.
|Index Name||BNP Paribas USD EUR FX Spot Index|
|Index Provider||BNP Paribas|
|Leverage Method||No Leverage|
|Documents and Links|
|Collateral Coverage Ratio||105.0%|
|Custodian||Bank of New York Mellon|
Boost is an independent boutique Exchange Traded Product (“ETP”) provider and as such it is independent from any investment bank, swap provider, trustee or custodian. Boost ETPs have a robust and transparent collateral structure, which Boost believes offers investors a best of breed counterparty risk model, where investors’ interests are aligned with Boost's.
The BNP Paribas USD EUR FX Spot Index (the “Index”) is the exclusive property of BNP Paribas (the “Index Sponsor”). The Index Sponsor does not guarantee the accuracy and/or completeness of the composition, calculation, publication and adjustment of the Index, any data included therein, or any data on which it is based, and the Index Sponsor shall have no liability for any errors, omissions, or interruptions therein. The Index Sponsor makes no warranty, express or implied, as to results to be obtained from the use of the Index. The Index Sponsor makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data included therein. Without limiting any of the foregoing, in no event shall the Index Sponsor have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages and their liability shall not be greater than the fees paid for the Index.