Leverage Shares has launched 28 new ETPs on London Stock Exchange providing inverse or leveraged exposure to popular individual stocks traded on US exchanges.
The ETPs offer investors the tools to enact tactical positions on individual US stocks.
The ETPs offer inverse (-1x), double leveraged (2x), or triple leveraged (3x) exposure to the return on the underlying stock, reset daily.
Current inverse and leveraged ETPs typically use derivatives, such as swaps, to achieve their leverage, introducing credit risk to investors.
Leverage Shares ETPs, however, do away with credit risk and are fully backed by purchasing the underlying stocks directly – using proceeds from the issuance of the ETPs and a margin loan. Residual cash, such as dividends from the underlying stocks, is also reinvested.
According to Leverage Shares, the firm’s ability to access margin borrowing at institutional rates allows it to offer its products to investors at a competitive rate. Each ETP comes with an expense ratio of 0.75%.
Oktay Kavrak, Institutional Sales at Leverage Shares, commented, “Leverage Shares is the only provider of physically backed short and leveraged ETPs and does away with the credit risk found in competing products. Given the heightened interest in short and leveraged offerings in the current volatile environment, we are proud to offer a safer alternative to trading contract for differences (CFDs) or buying on margin.”
Inverse and leveraged ETPs can be considered inappropriate for retail investors who perhaps might not fully understand the risks involved. Specifically, these products tend to decay in value if held for an extended period of time, potentially leading to significant losses, especially in volatile but range-bound markets.
For sophisticated traders, however, they can offer an efficient means to obtain tactical exposures.
Leverage Shares ETPs provide investors with the tools to hedge positions or make high conviction trades in some of the world’s most important companies, from tech giants such as Apple, Microsoft, and Google to consumer discretionary blockbuster firms like Netflix, Amazon, and Tesla.
Oktay added, “Our products are meant for experienced investors to capitalize on opportunities in both directions. These include short-term tactics like magnifying intraday moves and reacting to the news, while also catering to longer-term strategies like managing risk through hedging.”
Lida Eslami, Head of Business Development, ETP and IOB, London Stock Exchange, added, “We are delighted to welcome Leverage Shares’ products on London Stock Exchange. Our markets continue to offer investors a wide range of innovative products, providing choice and diversification for their portfolios. The listing of the Leverage Shares short & leveraged ETPs based on leading US stocks is a first in Europe.”
The ETPs
All 40 Leverage Shares ETPs are available on London Stock Exchange with US dollar, pound sterling, and euro trading lines.
Leverage Shares -1x Advanced Micro Devices ETP (USD – AMDS LN; GBP – SAMD LN; EUR – SAME LN)
Leverage Shares -1x Alibaba ETP (BABS LN; SBAB LN; SBAE LN)
Leverage Shares -1x Alphabet ETP (GOOS LN; SGOO LN; SGOE LN)
Leverage Shares -1x Amazon ETP (AMZS LN; SAMZ LN; SAZE LN)
Leverage Shares -1x Apple ETP (APLS LN; SAPL LN; SAPE LN)
Leverage Shares -1x Facebook ETP (FBS LN; SFB LN; SFBE LN)
Leverage Shares -1x Micron Technology ETP (MUS LN; SMU LN; SMUE LN)
Leverage Shares -1x Microsoft ETP (MSFS LN; SMSF LN; SMSE LN)
Leverage Shares -1x Netflix ETP (NFLS LN; SNFL LN; SNFE LN)
Leverage Shares -1x NVIDIA ETP (NVDS LN; SNVD LN; SNVE LN)
Leverage Shares -1x Salesforce.Com ETP (CRMS LN; SCRM LN; SCRE LN)
Leverage Shares -1x Tesla ETP (TSLS LN; STSL LN; STSE LN)
Leverage Shares -1x Twitter ETP (TWTS LN; STWT LN; STWE LN)
Leverage Shares -1x Uber ETP (UBRS LN; SUBR LN; SUBE LN)
Leverage Shares 2x Advanced Micro Devices ETP (AMD2 LN; 2AMD LN; 2AME LN)
Leverage Shares 2x Alibaba ETP (BAB2 LN; 2BAB LN; 2BAE LN)
Leverage Shares 2x Alphabet ETP (GOO2 LN; 2GOO LN; GOOE LN)
Leverage Shares 2x Amazon ETP (AMZ2 LN; 2AMZ LN; AMZE LN)
Leverage Shares 2x Apple ETP (AAP2 LN; 2AAP LN; AAPE LN)
Leverage Shares 2x Citigroup ETP (CIT2 LN; 2CIT LN; CITE LN)
Leverage Shares 2x Facebook ETP (FB2 LN; 2FB LN; FB2E LN)
Leverage Shares 2x Goldman Sachs ETP (GS2 LN; 2GS LN; GS2E LN)
Leverage Shares 2x JPMorgan ETP (JPM2 LN; 2JPM LN; JP2E LN)
Leverage Shares 2x Micron Technology ETP (MU2 LN; 2MU LN; 2MUE LN)
Leverage Shares 2x Microsoft ETP (MSF2 LN; 2MSF LN; MSFE LN)
Leverage Shares 2x Netflix ETP (NFL2 LN; 2NFL LN; NFLE LN)
Leverage Shares 2x NVIDIA ETP (NVD2 LN; 2NVD LN; NVDE LN)
Leverage Shares 2x Salesforce.com ETP (CRM2 LN; 2CRM LN; CRME LN)
Leverage Shares 2x Tesla ETP (TSL2 LN; 2TSL LN; 2TSE LN)
Leverage Shares 2x Twitter ETP (TWT2 LN; 2TWT LN; 2TWE LN)
Leverage Shares 2x Uber ETP (UBR2 LN; 2UBR LN; 2UBE LN)
Leverage Shares 2x Visa ETP (VIS2 LN; 2VIS LN; VISE LN)
Leverage Shares 3x Alphabet ETP (GOO3 LN; 3GOO LN; 3GOE LN)
Leverage Shares 3x Amazon ETP (AMZ3 LN; 3AMZ LN; 3AME LN)
Leverage Shares 3x Apple ETP (AAP3 LN; 3AAP LN; 3APE LN)
Leverage Shares 3x Facebook ETP (FB3 LN; 3FB LN; 3FBE LN)
Leverage Shares 3x Microsoft ETP (MSF3 LN; 3MSF LN; 3MSE LN)
Leverage Shares 3x Netflix ETP (NFL3 LN; 3NFL LN; 3NFE LN)
Leverage Shares 3x NVIDIA ETP (NVD3 LN; 3NVD LN; 3NVE LN)
Leverage Shares 3x Salesforce.Com ETP (CRM3 LN; 3CRM LN; 3CRE LN)