WisdomTree Europe has made changes to the underlying indices and names of its ETPs tracking US large cap equities.
The changes are summarised as follow:
The Boost US Large Cap 3x Leverage Daily ETP is now known as the Boost S&P 500 3x Leverage Daily ETP and will track the S&P 500 Net Total Returns index. The Boost US Large Cap 3x Short Daily ETP, meanwhile, is now known as the Boost S&P 500 3x Short Daily ETP and will S&P 500 Total Returns index.
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 cent 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 per cent of the AUM being 3x short, and 26 per cent being 3x long.
WisdomTree Europe Co-CEO, Nik Bienkowski (pictured), says: “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 per cent 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 says: “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 US, and this agreement via its subsidiary, WisdomTree Europe, further strengthens the association.”