Boost makes debut on Deutsche Börse with DAX and Euro Stoxx 50 ETPs

Jul 16th, 2014 | By | Category: Alternatives / Multi-Asset

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Boost ETP, a specialist provider of short and leveraged exchange-traded products, has entered the German market with the launch of four products on the Deutsche Börse (Xetra).

Boost makes debut on Deutsche Börse with DAX and Euro Stoxx 50 ETPs

Hector McNeil, Co-CEO of Boost.

The London-headquartered provider, which was recently acquired by US exchange-traded fund giant WisdomTree, is also active on the London Stock Exchange in the UK and Borsa Italiana in Italy.

The new launch takes the total number of ETP listings offered by the provider across all exchanges to 68.

The products – namely the Boost LevDAX 3x Daily ETP (3DEL), Boost ShortDAX 3x Daily ETP (3DES), Boost Euro Stoxx 50 3x Leverage Daily ETP (PCFD), Boost Euro Stoxx 50 3x Short Daily ETP (PCFC) – offer triple-leveraged long and short exposure to the DAX and Euro Stoxx 50 indices, respectively.

This means, for example, that 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%. Similarly, if the Euro Stoxx 50 rises by 1% on a particular day, then “PCFD” will rise by 3% and “PCFC” will fall by 3%. However, if the Euro Stoxx 50 falls by 1% then “PCFD” will fall by 3% and “PCFC” will rise by 3% (the performance figures are before fees and adjustments).

The DAX measure the performance of 30 major German blue-chip companies, while the Euro Stoxx 50 measures the performance of 50 of the largest Eurozone blue-chip stocks.

Demand for short and leveraged ETPs, which are used for a range of tactical and strategic investment purposes, has increased over the past few years, with global assets rising to circa $60 billion. The growth has been driven by a number of factors, including a growing preference from investors for liquid and transparent exchange-traded instruments.

Commenting on the launch, Hector McNeil, Co-CEO of Boost ETP, said: “Boost is very proud to be listing four new ETPs in Germany. Short and leverage exchange-traded products can be useful tools, allowing investors to hedge portfolios or take short-terms views on the world’s major commodity and equity indices. Having already assisted with the launch of short and leverage ETCs [exchange-traded commodities] in Germany in the past, Boost’s founders look forward to continuing their relationship with the German market.”

The short products have an annual management fee rate of 0.80%, while the long products have an annual management fee rate of 0.75%.

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