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MicroSectors launches short and leveraged energy ETNs 


MicroSectors from REX Shares has launched short and leveraged energy ETNs offering 3X/ -3X exposure to the sector. WTIU – MicroSectors Energy 3X Leveraged ETNs and WTID – MicroSectors Energy -3X Inverse Leveraged ETNs are based on the performance of the Solactive MicroSectors Energy Index.

Solactive writes that Oil & Gas are the main ingredients of a great variety of industrial products such as transportation fuels, plastics, solvents, and a source of electricity and heat generation. 

“Recently, demand and supply for these commodities as well as their prices have been rising in volatility on a global basis, especially due to market concerns about energy shortages, Covid-19 restrictions in China, and a recession in the horizon. However, the restraints of Russian oil by the European Union, China’s reopening, and the prospect of a change in the Fed monetary policy can establish a different scenario for these commodities’ prices.”

The Solactive MicroSectors Energy Index tracks the performance of 12 highly liquid, US domiciled and listed companies operating in the energy and oil sector, offering investors exposure to these sectors. To be eligible for inclusion in the index, the companies need to be classified as Integrated Oil and Gas Exploration and Production, Fossil Fuel Exploration and Production, or Petroleum Refineries.

Timo Pfeiffer, CMO of Solactive, says: “We are excited to partner with REX to bring these two new ETNs to market, a suite of leveraged and inverse leveraged offerings to give investors different possibilities to gain exposure to this important sector, as oil and gas remain the most important factor of the energy mix. L&I products are increasingly gaining importance for investors who want to pursue short-term market views to generate capital gains, increase diversification, or hedge their positions.”

REX Shares writes that it continues to see strong demand for hedging and trading tools based on specific segments of the market, such as equity securities of companies in the energy and oil sector.

Scott Acheychek, CEO of REX, says: “We are excited to expand on our existing energy related offerings with a new suite of leveraged and inverse leveraged exchange-traded notes. The energy suite will provide investors with exposure to 12 highly liquid companies that are at the forefront of global energy trends.

“Since founding MicroSectors in 2018, we have been dedicated to innovating the ETP landscape by offering unique exposures to popular investable market segments. We believe the addition of these ETNs to the product line-up furthers this objective.”

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