Boost, Europe’s specialist Short and Leverage (S&L) Exchange Traded Products provider, is changing the underlying index of its ETPs giving exposure to US large cap equities, from the Russell 1000 index to the S&P 500®….
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Viktor Nossek, Director of Research at WisdomTree Europe
- Boost ETPs tracking US equity indices now total $56m in notional assets, up 28% in July
- Trading volumes of Boost’s ETPs reached a new high last month, with total notional trading volume exceeding $3bn
- Boost offers 67 ETPs which track the main benchmarks in equities, fixed income, currencies, and commodities, including a range of non-leveraged Exchange Traded Commodities
WisdomTree Europe, has announced changes to the underlying indices and names of its ETPs tracking US large cap equities.
The changes are summarised as follows:
The change comes as both trading volumes and AUM of Boost ETPs reached new highs, as investors increased their use of Boost’s ETPs to implement bullish or bearish views in volatile markets. Turnover in Boost ETPs, which are listed on the London Stock Exchange, Borsa Italiana and Germany’s XETRA platform, have been growing at an average rate of over 40% per month for the past two years, to approximately $1.1bn in June, or $3.3bn in notional terms. Assets in Boost’s 3x Short and 3x Leveraged US Large Cap ETPs have more than doubled in the past month, as investors express bearishness on US large cap equities with 74% of the AUM being 3x short, and 26% being 3x long.
WisdomTree Europe Co-CEO, Nik Bienkowski, commented:
“We are pleased to be working with a leading index provider such as S&P Dow Jones Indices, and to bring one of the world’s most recognisable US equity indices on to our platform. Demand for S&L ETPs has been increasing month on month, with demand for 3x short US equities increasing by 100% this month, along with record demand for 3x leverage oil. Due to this increased demand and switch to the S&P 500 index, investors in Boost’s US equity ETPs should benefit from tighter spreads and improved liquidity throughout the European trading day.”
S&P Dow Jones Indices North American Equities, Vice President, Phil Murphy commented:
“We are pleased to further our relationship with WisdomTree Investments through the licensing of our iconic S&P 500 stock market index. S&P Dow Jones Indices already has a strong relationship with WisdomTree in the U.S., and this agreement via its subsidiary, WisdomTree Europe, further strengthens the association.”
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 products. Boost offers ETPs covering all the major indices across equities, commodities, fixed income and currencies.
Source: Bloomberg, Boost as of July 15th
Source: Boost, as of July 15th