Boost ETP launches four ETPs in Germany
Boost ETP, the European short and leverage (S&L) exchange traded product (ETP) provider, has listed four new products on Deutsche Boerse’s Xetra for the first time.
This brings the firm's product range to a total of 68 listings on the London Stock Exchange, Borsa Italiana and Xetra.
“Boost is very proud to be listing four new ETPs in Germany. Having already assisted with the launch of short and leverage ETPs in Germany in the past, Boost’s founders look forward to continuing their relationship with the German market.”
The four new products include the Boost ShortDax 3x daily ETP, Boost LevDAX 3x daily ETP, Boost Euro Stoxx 50 3x short daily ETP and Boost Euro Stoxx 50 3x leverage daily ETP.
They are designed to return 3x the daily movement, long or short, of the relevant benchmark index.
For example, if the Dax rises by 1% on a particular day, then "3DEL" will rise by 3% and "3DES" will fall by 3%. However, if the Dax falls by 1% then "3DEL" will fall by 3% and "3DES" will rise by 3% (less fees and adjustments).
Demand for transparent, liquid and robust S&L ETPs has increased over the past few years with global S&L ETP assets rising to around $60bn, according to the Boost S&L ETFs/ETPs Global Flows Report in June.
“Underpinned by volatility within eurozone banks and the recent fading economic growth momentum in Germany, S&L investors repositioned bearishly in German equities in June. The bearish conviction was evident by the inflows into -2x short ETPs that coincided with outflows from +2x leveraged (long) ETPs," said Viktor Nossek, head of research at Boost ETP.
Nossek explained that given the high beta of the German equity market and otherwise favourable valuations relative to peers in Europe, S&L investors’ downbeat sentiment in the DAX 30 is prone to potentially reverse itself as the situation surrounding Banco Espirito Santo gets overshadowed by more upbeat macro data elsewhere.
"Nevertheless, as a geared tactical play on eurozone sentiment, S&L ETPs tracking the DAX 30 offer investors a unique geared exposure to equities that this year have failed to extend to the strong returns from last year,” he added.
This brings the firm's product range to a total of 68 listings on the London Stock Exchange, Borsa Italiana and Xetra.
“Boost is very proud to be listing four new ETPs in Germany. Having already assisted with the launch of short and leverage ETPs in Germany in the past, Boost’s founders look forward to continuing their relationship with the German market.”
The four new products include the Boost ShortDax 3x daily ETP, Boost LevDAX 3x daily ETP, Boost Euro Stoxx 50 3x short daily ETP and Boost Euro Stoxx 50 3x leverage daily ETP.
They are designed to return 3x the daily movement, long or short, of the relevant benchmark index.
For example, if the Dax rises by 1% on a particular day, then "3DEL" will rise by 3% and "3DES" will fall by 3%. However, if the Dax falls by 1% then "3DEL" will fall by 3% and "3DES" will rise by 3% (less fees and adjustments).
Demand for transparent, liquid and robust S&L ETPs has increased over the past few years with global S&L ETP assets rising to around $60bn, according to the Boost S&L ETFs/ETPs Global Flows Report in June.
“Underpinned by volatility within eurozone banks and the recent fading economic growth momentum in Germany, S&L investors repositioned bearishly in German equities in June. The bearish conviction was evident by the inflows into -2x short ETPs that coincided with outflows from +2x leveraged (long) ETPs," said Viktor Nossek, head of research at Boost ETP.
Nossek explained that given the high beta of the German equity market and otherwise favourable valuations relative to peers in Europe, S&L investors’ downbeat sentiment in the DAX 30 is prone to potentially reverse itself as the situation surrounding Banco Espirito Santo gets overshadowed by more upbeat macro data elsewhere.
"Nevertheless, as a geared tactical play on eurozone sentiment, S&L ETPs tracking the DAX 30 offer investors a unique geared exposure to equities that this year have failed to extend to the strong returns from last year,” he added.
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