Three leading ETP providers, Wisdom Tree’s Boost ETP, ETF Securities and Société Générale have launched an industry initiative designed to educate and advocate the benefits of Short & Leveraged ETPS (S&L ETPs) in a European market with an appetite for risk.
The group observes that as investors show increasing demand to trade high conviction views more regularly, there has been substantial growth in the number of S&L ETPs across equity, commodity, fixed income and FX asset classes made available to investors over the last 18 months.
In the current high-volatility market environment, these S&L ETP providers have seen substantial inflows and expect this trend to continue as investors increasingly move to where they cannot lose more than they invest.
Commenting on the initiative, Townsend Lansing, Head of Short & Leveraged, ETF Securities, says: “Investor sentiment has seen a trend away from off exchange leveraged trading to S&L ETPs. European assets under management in S&L ETPs have grown to USD8.2bn* as of February 2015, underlining their growing acceptance and importance for European investors”.
Ben Thompson, Director, Business Development, Listed Products, Société Générale commented, “Investor confidence in S&L ETPs is largely due to their high level of transparency, the regulatory standards they need to meet.”
Hector McNeil (pictured), Co-CEO of WisdomTree Europe, adds: “UK investor demand for increased choice of ways to make high conviction trades with confidence is real and growing. Currently, the total global AUM of short and leverage ETPs stands at USD61.7bn (as of 28 February 2015), an increase of 0.5% from the end of January 2015. Increasingly S&L ETPs are becoming the leveraged product of choice.”