Leverage Shares has launched a new actively managed ETP in Europe that seeks to outperform mainstream US equity indices over a full market cycle by utilizing a trend-following strategy.

The ETF utilizes volatility and momentum signals to determine whether to go long, short, or remain market neutral.

The Kronos Strategy ETP (KRON LN) has been listed on London Stock Exchange in US dollars.

The ETP replicates the Kronos Investment Strategy which was developed by Florida-based asset manager Mourelle Investments.

The approach seeks to achieve positive returns regardless of market direction by going long (up to 150% leveraged) or short (up to -150% leveraged) on the S&P 500, Nasdaq 100, Dow Jones Industrial Average, and Russell 2000.

The positioning of the strategy is determined by a proprietary model based on technical indicators related to the momentum, relative strength, and volatility of the equity indices.

During periods when the model is neither bullish nor bearish, the strategy may maintain a market-neutral stance or shift assets into money market securities.

The ETP does not use derivatives, such as swaps, to achieve its leverage. Instead, it invests fully in liquid, third-party ETFs that provide exposure to the target indices and uses margin loans to leverage the position as required.

The list of eligible ETFs includes the SPDR S&P 500 ETF, Invesco QQQ, SPDR Dow Jones Industrial Average ETF, iShares Russell 2000, ProShares Short Dow30, ProShares Short S&P 500, and ProShares Short Russell2000.

The ETP comes with a management fee of 1.25% as well as a performance fee of 20% relative to a high water mark.