Leverage Shares has expanded its product offerings on global exchanges. The firm writes that the launches come after achieving a record monthly turnover of more than USD420 million across its product range in February 2023.
Among the new product listings are several firsts for the company, including a FAANG+ basket ETP and Short & Leveraged (S&L) ETPs tracking Fixed Income.
The basket ETP is the first pure-play providing physical, concentrated exposure to a group of leading technology stocks for European investors. With this new ETP structure, the company writes that it is able to eliminate ‘fillers’ that are common with UCITS ETFs (which have concentration restrictions) and provide non-diluted exposure to US tech leaders. The company is also launching an actively managed strategy that seeks to capitalise on the ‘contango’ of the volatility curve, while managing the risk of dramatic volatility spikes.
The company’s single stock suite has also expanded with 3x and -3x versions of household equities like Exxon and Ferrari. Other products include 3x and -3x broad market trackers which provide exposure to the Indian stock market.
Commenting on the launch, Oktay Kavrak, Director of Product Strategy at Leverage Shares says: “We are proud to gear up sophisticated investors with the tools necessary to navigate the current volatility in interest rates and inflation expectations. By adding S&L fixed income ETPs, our first pure-play basket and more single names to our line-up of 170+ products in London, we’ve solidified our place as the go-to provider of alternative investments (ETPs) for investors across the UK and Europe.”
The firm writes that one of the special features of its ETPs is that many of the securities are equipped with leveraged and inverse exposure. This allows investors to participate with magnified exposure in both rising and falling markets, the firm says. The management fee is between 0.35 and 0.75 per cent — significantly less than alternative means of trading with leverage. The company declared a fee holiday for its Inverse Tesla and NIO ETPs. They trade with a 0 per cent management fee until at least 30th September 2023.
The firm writes that offering positive yields on all Inverse ETPs is among the unique features of Leverage Shares’ products. The positive yields on some ETPs are reaching more than 10 per cent on an annualised basis.
All Leverage Shares ETPs are physically backed, which means the ETPs physically own the underlying asset, so no swaps or derivatives are used to gain exposure.