• Boost, Europe’s specialist Short and Leverage ETP (S&L) provider, has been consistently gaining market share on Borsa Italiana’s ETFPlus market and has obtained a record 53% share of short & leveraged ETPs turnovers and a 45% market share overall………
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Nik Bienkowski, Co-CEO of WisdomTree Europe
• Boost’s S&L natural gas ETCs traded three times as much as any other issuer’s, and its S&L oil ETCs traded 67% more than any other issuer
• In equities, Boost obtained a 68% market share, with Boost S&L ETPs on the FTSE MIB, DAX and the EURO STOXX 50 getting more than twice the volumes of the competition
• Boost had four of the top five traded ETPs on Borsa Italiana’s ETFPlus last week
WisdomTree Europe, an exchange traded fund (“ETF”) and exchange traded product (“ETP”) sponsor, and specialist in short and leverage (S&L) ETPs through the Boost ETP product range continues to increase its market share in Italy. Boost’s market share on Borsa Italiana’s ETFPlus market reached a 53% share of S&L ETP turnover and a 45% market share overall.
Trading volumes in Boost’s ETPs on Borsa Italiana have been on a clear growth trend, more than tripling year-to-date. Furthermore, out of the top 5 most traded ETPs last week, four were Boost’s, and Boost ranked number 1 in overall contracts traded. Across London, Italy and Germany exchanges Boost ETPs have increased trading month on month since the start of the year, to nearly €2.5bn notional turnover this past May. Boost’s Assets under Management (AUM) have also risen 289% in the past year and hit a record of €365m 2 in June.
Boost’s leading ETPs have become established as the most liquid S&L ETPs on Borsa’s ETFPlus market. Last week Boost’s S&L natural gas ETCs traded €63m, three times as much as any other issuer’s products, while Boost’s S&L oil ETCs traded €77m, 67% more than any other issuer. In equities, Boost S&L ETPs on the FTSE MIB, DAX and the EURO STOXX 50 enjoyed more than twice the volumes of the competition.
Nik Bienkowski, Co-CEO of WisdomTree Europe, commented:
“Boost entered the Italian market in October 2013. Since then, Boost has listed 41 S&L ETPs on Borsa covering equities, commodities, fixed income and FX. We have grown our AUM 289% over the past year while trading volumes have risen 537%, which is very impressive. It clearly shows that investors have a strong appetite for robust and transparent short & leveraged investment vehicles. To gain over 45% market share in the Borsa Italiana ETC/ETP segment in less than two years from launch is nothing short of spectacular.”
Boost has experienced particularly good traction with its S&L oil and natural gas ETPs, which are the most liquid S&L ETCs in Europe for trading the commodities. Viktor Nossek, Director of Research for WisdomTree Europe, had this to say:
“As the macro uncertainty continues, energy commodities will likely continue to be less directional. There are signs of strength for oil demand coming from economic growth in the US and Eurozone gathering pace, however concerns over oil supply persist with OPEC maintaining record high levels of production. Under such a directionless path for oil, leveraged positioning may be beneficial for short term investors seeking extra returns opportunistically. In the natural gas market, the hot US weather and flat supply underpin the recent rise in natural gas prices. US gas consumption has continued to increase since the spring and this week rose by 3.1% while supply was essentially flat this week. The range at which natural gas has been trading since January, between a $2.5 and $3/MMbtu, is likely to persist without a clear direction. Switching between bullish and bearish positions over short holding periods is likely the best strategy to opportunistically position around natural gas.”
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 product. Boost now offers ETPs covering all the major indices across equities, commodities, fixed income and currencies. In total, Boost ETP’s product range totals of 110 listings on Borsa Italiana, the London Stock Exchange, and Germany’s Xetra.