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Boost ETP launches four ETPs in Germany
17 July 2014
The ETP provider lists products on Deutche Boerse’s Xetra for the first time
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
"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.