Boost ETP’s Silver 3x Leverage Daily ETP (3SIL) was the top performing exchange-traded fund listed on the London Stock Exchange (LSE) in August.
Boost’s Silver 2x Leverage Daily ETP (2SIL) was the second top performer.
This year, as the outlook for growth and risk assets improved, precious metals have been the worst performing asset classes. From the start of this year to their low on 27 June, silver fell 38 per cent, while gold fell 26 per cent. However, since their low, precious metals have rebounded strongly with silver rising 29 per cent and gold 13 per cent. As sentiment of gold and silver ETP investors recovers, silver has enjoyed renewed interest, with inflows of 4.2 per cent of outstanding shares in July and 3.1 per cent in August. In comparison, gold continued to register outflows in both July and August.
The performance statistics indicate the value short and leverage (S&L) ETPs can bring to investors, with 3x S&L ETPs having been first introduced to the market last December. Investors have been responding to the availability of new products as evidenced by the increasing AUM and trading volumes in Boost ETPs. S&L ETPs provide up to 3x or -3x the exposure through one simple trade, negating the need for complex documentation or use of derivatives.
Recently, trading volumes of Boost ETPs have risen dramatically with increased interest in products providing exposure to equities (short Euro Stoxx 50, short and leverage FTSE 100), and commodities (short and leverage silver, and leverage gold).
Nik Bienkowski, co-chief executive of Boost, says: “Gold and silver prices rebounded in August with Boost Silver 3x Leverage Daily ETP returning 65.6 per cent for the month. The introduction of the Boost range of 3x short and 3x leverage ETPs/ETFs was a first to Europe and the UK, and is proving to be a useful tool for investors to hedge risk or express a view with less capital.
“The increased trading volumes and AUM in Boost ETPs also reflect investors’ strong appetite for our products. Boost’s focus on product innovation, education and client service is being appreciated by clients. Additionally, independence and transparency are becoming key requirements. We believe these are the standards that investors will increasingly demand in the next generation of ETF / ETP providers.”