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Boost 3x leverage Euro Stoxx 50 ETP is top performer on LSE in September


Boost ETP’s Euro Stoxx 50 3x Leverage Daily ETP (3EUL) was the top performing exchange-traded product listed on the London Stock Exchange (LSE) in September.

Boost LevDax 3x Daily ETP (3DEL) was the second top performing ETP and Boost TOPIX 2x Leverage Daily ETP was number five.
September was marked by the Fed’s announcement to delay the widely anticipated tapering of monetary stimulus. Taken by surprise, the response on equity markets was bullish, with the DJ Euro Stoxx 50 and the DAX 30 rising 6.3 per cent and 6.0 per cent (in EUR) respectively during the month.
US equities, having outperformed main European benchmarks this year, rallied less. The Russell 1000 and Nasdaq indices ended up 6.2 per cent and 4.7 per cent, respectively (in USD terms). However, the devaluation of the dollar triggered by the QE tapering delay resulted in the indices ending the month down by 1.5 per cent in GBP terms.
Following the news on 18 September that Tokyo won hosting rights for the 2020 Olympic Games, the major infrastructure upgrades required fuelled speculation that PM Abe’s structural reform and fiscal stimulus agenda will succeed. While losing momentum towards the end of the month, The TOPIX was up 8.0 per cent (in Yen).
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 are attractive to investors as they 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 FTSE 250), and commodities (short oil, short copper, and leverage gold).
Nik Bienkowski (pictured), co-chief executive of Boost ETP, says: “Equities continued their rise in September with Boost Euro Stoxx 50 3x Leverage Daily ETP (3EUL) returning 20.1 per cent (in EUR) for the month. The introduction of the Boost range of 3x short and 3x leverage ETPs / ETFs was a first in Europe and the UK, and is proving to be a useful tool for investors to hedge risk or express a view with less capital. Boost currently offers 17 different equity ETPs covering UK, US, Europe, Germany and Japan.
“Global short and leveraged ETP assets have risen by USD6.8bn (15 per cent) in the first eight months of 2013 to USD51.1bn, as investors continue to increase their usage of short and leveraged ETPs. Demand for S&L ETPs was also supported by Boost ETPs’ AUM, having doubled between June and end of September. In total, there is USD35.1bn of assets held in S&L equity ETPs globally.”

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