BOOST ETP, the award winning and independent exchange-traded product (ETP) provider, has released its Global Short & Leverage ETF/ETP report for October 2013. Global Short and Leveraged (S&L) ETP assets have risen by $6.6bn (15%) in the first ten months of 2013 to $51.5bn, as investors continue to increase their use of S&L ETPs. Demand for S&L ETPs was also supported by volumes in BOOST ETPs having risen by 5x since early September.
Of the $51.1bn of AUM currently held by S&L ETPs globally:
- $34.4bn is held in S&L equity ETPs. In October, S&L equity ETPs experienced $865 million of inflows in October and $5 billion YTD
- Equity ETPs: $4.5bn of AUM is held in S&L equity ETPs tracking Europe or European countries, of which 42% is held in long ETPs and 58% is held in short ETPs, with the largest positions in German ($1.2 billion), broad European ($760 million), Italian ($695 million) and French ($614 million) equities
- Fixed income ETPs: $9.4bn is held in S&L fixed income ETPs, of which 98% is held in short ETPs, which is consistent with a strong expectation of rising interest rates
- Commodity ETPs: Currently there is $4.5 billion of AUM held in S&L commodity ETPs of which 56% is held in long commodity ETPs and 44% is held in short commodity ETP, with the highest net inflows going to natural gas ($135 million) and silver ($10 million), while gold and oil experienced outflows of $27 million and $26 million respectively
BOOST ETP is also experiencing rising investor demand for its robust and transparent S&L ETPs. BOOST ETP listed eight new 3x Short and 3x Leveraged ETPs on the Borsa Italiana for the first time on 31 October 2013. BOOST ETPs had a 6.1% market share in the ETP segment of Borsa Italiana’s ETFPlus platform. Last week BOOST had a record breaking week with inflows into 3x Leverage Oil, 3x Leverage Natural Gas, 3x Short FTSE MIB, 2x Short FTSE 100 and 1x Short FTSE 250. In total, there was $10m of inflows. November’s trading volumes are up 5x (500%) compared to early September.
BOOST offers a platform of Short and Leverage equity ETPs and commodity ETCs giving exposure to a wide variety of leverage factors ranging from -3x to +3x.