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Boost ETP hits new records including AUM and trading volumes

Monday 01st December '14

  • BOOST AUM reaches a record $160m, which is a rise of 332% since the end of November 2013 when AUM stood at $37m
  • BOOST trading volumes reached a record $288m so far in November, a ten-fold increase from November 2013 when volumes were $25m 
  • Global S&L ETP/ETF industry has grown 5.5% this year to US$ 61b at the end of October. The industry’s compound annualised growth has been 38% since 2008 (source: Boost ETP, A WisdomTree Company)

BOOST ETP, A WisdomTree Company and Europe’s award winning, specialist Short and Leverage (S&L) Exchange Traded Product (ETP) provider is proud to announce that it has hit a new record in AUM of $160M and total monthly exchange turnover of $288 million. The growth in AUM is a rise of 332% since November 2013. The record turnover of $288 million across all BOOST’s products so far this month is up ten-fold from $25m per month in November 2013 and is already a record for any months trading since BOOST launched its first products.
BOOST’s top 5 ETPs by AUM:

BOOST’s growth has been the result of providing innovative products 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 product. The following are the key uses and benefits of S&L ETPs:
  • S&L ETPs trade and settle the same as equities
  • Investors can treble the daily return of their investment (excluding fees and adjustments”), or use less capital to achieve the same exposure as a delta-1 ETF
  • Investors can hedge existing positions in one simple trade
  • Investors can use S&L ETPs in a long or short strategy to take advantage of any rises or falls in the market
  • S&L ETPs can be used in a pairs trade to take advantage of undervalued assets
  • Investors can get short the market/asset class quickly, efficiently and cheaply
  • Investors can enhance a balanced portfolio by investing a small percentage tactically when short-term opportunities arise. 
Demand for transparent, liquid and robust S&L ETPs has increased over the past few years with global S&L ETP assets rising to $61bn (BOOST Short & Leveraged ETFs/ETPs Global Flows Report, October 2014). The rise in volatility in the month of October triggered major inflows across major asset classes, including $3 billion inflows into S&L equity ETPs, $273 million inflows into S&L debt ETPs and $319 million into S&L commodity ETPs. S&L ETPs tracking alternative asset classes such as real estate and multi-asset benchmarks also received a boost of $975 million inflows in the same period. As many financial markets have trended in volatile sideway trends this year, investors have increasingly needed to focus on tactical, short-term trades and hedging opportunities to ensure they preserve and grow their capital. 

Hector McNeil, Co-CEO of WisdomTree Europe had this to say 

“The 332% growth in AUM and 1,000% growth in trading volumes in BOOST ETPs over the past 12 months is very impressive. It clearly shows that investors have a strong appetite for robust and transparent leveraged investment vehicles. We have worked hard to help educate the investment community on how best to use the products. Demand has risen significantly especially around events where investors want to hedge their risks, such as the Scottish Referendum and European rates QE speculation.
“We will continue to provide innovative products backed up by educational tools, conference calls and face to face events in order to ensure our customers have a deep understanding of what is on offer. Investors have also enjoyed the expansion of our ETP platform, which includes a comprehensive multi asset range of equities, commodities and sovereign fixed income.”
Viktor Nossek, Director of Research at WisdomTree Europe commented:
“Volatility helped the S&L ETP industry to grow by 5.7% in October, as investors sought geared exposure to take bullish positions in equity, debt and commodity markets. The strongest conviction was in equities where $4.2bn long ETPs were bought even as more than $1bn short ETPs were sold in the period. However, October’s sharp correction in energy commodities also drove S&L investors to take advantage of the fall in prices, by reinforcing their bullish positioning on oil and natural gas. Net inflows totalled $318 million into oil and natural gas ETPs combined. Hence, while spiking volatility typically gives strategic investors and excuse to sell, for S&L investors, it is yet another opportunity to buy.”
BOOST has worked hard to develop its educational materials to help investors better understand the structure, benefits and risks of S&L ETPs/ETFs. Educational tools include the ‘Adviser/Investor Tool Kit’ which includes a Tutorial and Test, a Returns Simulator and various fact sheets and FAQs. BOOST also provides regular conference calls and face to face educational opportunities for investors