Bringing you live news and features since 2006 

Short & Leveraged ETPs see boost in assets under management

RELATED TOPICS​

WisdomTree Europe’s BOOST, provider of specialist Short and Leverage (S&L) Exchange Traded Products, reports that AUM of S&L ETPS at the end of December was up 14 per cent in 2015, with inflows of USD68 billion.

 Boost writes that investors in S&L ETPs can express bullish as well as bearish sentiment by investing in either a leveraged or a short ETP. The firm writes: “The AUM of S&L ETPs can reveal a broader range of investor sentiment than flows or AUM data for mutual funds and other ETPs. Since S&L ETPs tend to be held for shorter periods and used more for tactical positioning, AUM and flows data for S&L ETPs can provide valuable insight into the market sentiment of a relatively sophisticated set of investors.”
 
The BOOST Short & Leveraged ETFs/ETPs Global Flows Report highlights the key flows and trends in S&L ETPs across asset classes and geographies.
 
Nick Leung, Research Analyst at WisdomTree Europe, says: “December capped a record year for short & leveraged ETPs as investors took advantage of persistent volatility to position opportunistically or hedge their exposures.
 
“The build-up of bearish sentiment on fixed income, following the much anticipated first Fed rate hike since 2006, was cut short by China’s slowdown fears amidst falling industrial confidence pressuring the RMB.  This triggered redemptions of USD260 million on short ETPs tracking US debt, accelerating the unwinding of short positions that had built up in the first half of 2015. At the same time, investors in S&L equity ETPs responded to the Fed rate hike by repositioning bullishly in US and European equities, as evident by contrasting flows in long and short ETPs.
 
“Flows into Japanese equities continued to strengthen but the positioning was mixed, with an additional USD870 million flowing into both long and short positions in equal measure last month. 2015 inflows into S&L ETPs tracking Japanese equities now stand at over USD5.2 billion. S&L commodity ETPs also enjoyed substantial inflows of USD710 million in December, underpinned by contrarian bets in response to the RMB devaluation raising geopolitical tensions in Asia.”
 
 

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
ETFs
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by