Boost ETP surpasses $500m AUM milestone

Sep 8th, 2015 | By | Category: Alternatives / Multi-Asset

Boost ETP, a specialist issuer of short and leveraged exchange-traded products, celebrated a landmark achievement at the end of August when assets under management surpassed the $500 million mark. The milestone highlights the growing appetite for short and leveraged ETPs in Europe and the versatility and functionality of such products in volatile market conditions.

Short & leveraged ETP specialist Boost surpasses $500m AUM milestone

Hector McNeil (left) and Nik Bienkowski, Founders and Co-CEOs of Boost ETP. Boost was acquired by WisdomTree in early 2014.

The issuer, a subsidiary of WisdomTree Europe, has seen AUM more than triple in the last year from $130m to $503m as of 31 August 2015.

Trading volumes have also risen dramatically, with over $3bn in notional turnover recorded in August alone, notably above the $500m recorded during the same period last year.

Nik Bienkowski, Co-CEO of WisdomTree Europe, commented: “This trend reflects the confidence of investors in Boost’s structure, the market-leading liquidity of the ETPs, a better understanding of the capital-efficiency short and leveraged ETPs offer, and a platform of many leading benchmarks in equities, commodities, foreign exchange and fixed income”.

Boost currently offers a total of 118 ETP listings across the London Stock Exchange, Borsa Italiana and Deutsche Börse Xetra, offering short and leveraged exposure on most major equity indices, key fixed income markets, and an array of commodities and currencies.

One key area where the firm has established itself as a European market leader is in the provision of short and leveraged oil ETPs. Owing to the increased volatility of crude oil precipitated by unpredictable OPEC policies, economic slow down in China and lower-than-expected US oil production, short and leveraged oil ETPs experienced a significant spike in trading volume and contributed greatly to the milestone reached by Boost.

“The last week or so was a prime example of the usefulness of S&L oil ETPs in a volatile market. Most of the action was in oil. Boost’s 3x Leverage Oil (3OIL) and 3x Short Oil (3OIS) ETCs continued to demonstrate the best liquidity, with twice the turnover of any other S&L oil ETP, as well as the most favourable spreads. Our investors have been positioning bullishly in oil with positions being added as oil declined in prior sessions. Investors had over 82% of oil AUM in (long) leveraged ETCs just before the price of oil rebounded 27% over the last 3 days of August, with the price of Boost’s 3OIL rising 96% and 3OIL AUM reaching a record $216m,” noted Bienkowski.

Boost offers an extensive suite of S&L oil ETPs including:

Boost Brent Oil ETC (BRND)        

Boost WTI Oil ETC (WTID)           

Boost WTI Oil 1x Short Daily ETP (OILZ)

Boost WTI Oil 2x Leverage Daily ETP (2OIL)         

Boost WTI Oil 2x Short Daily ETP (2OIS)

Boost WTI Oil 3x Leverage Daily ETP (3OIL)

Boost WTI Oil 3x Short Daily ETP (3OIS)

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