Some of the largest and most popular exchange-traded funds (ETFs) linked to the semiconductor industry are set for a makeover following a re-ranking of the index they track. Among the funds affected are the iShares PHLX Semiconductor ETF (SOXX), the Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL) and the Direxion Daily Semiconductor Bear 3x Shares ETF (SOXS).

Boost, an independent provider of exchange-traded products, has countered criticism of leveraged and inverse exchange-traded funds (ETFs) from the US Federal Reserve. In a statement, the London-based firm, which specialises in leveraged and inverse products, said there was need for “more clarity and reasoned debate around the conclusions” of a recent Fed report entitled: Are Leveraged and Inverse ETFs the New Portfolio Insurers?

Global short and leveraged exchange-traded product (ETP) assets rose by $4.4bn in the first four months of 2013, to $48.5bn, according to data released by Boost ETP. The growth in assets is a reflection, in part, of the increased breadth and depth of products available, improved education and understanding, and a general move by investors towards more transparent, exchange-traded products.

Despite price gains across a range of commodities last week, many commodity investors remain deeply cautious and indeed bearish. This has led many to allocate capital to specialist short exchange-traded products (ETPs), which last week enjoyed one of their best ever weeks on record, in terms of asset flows. London-headquartered ETF Securities saw particularly strong inflows into its gold and copper-based products.

ETF Securities believes that the commodity super-cycle is far from over, despite recent falls in commodity prices which have wiped billions off the firm’s assets under management. The London-headquartered exchange-traded product (ETP) provider asserts that the main fundamental drivers of the super-cycle are still in force and that recent commodity price weaknesses are more related to business-cycle fluctuations and short-term commodity-specific supply increases than a change in structural fundamentals.

Exchange-traded funds (ETFs) and related exchange-traded products (ETPs) linked to the inverse performance of the gold price have surged over the past few weeks as the precious metal has tumbled following downgrades from a number of prominent research houses. One of the best performing ETPs in this space is the London-listed Boost Gold 3x Short Daily ETP (3GOS), which provides triple short exposure to the gold price. It is up 48.5% month-to-date on the back of the dramatic sell-off.

Direxion, a leading US-based provider of alternative exchange-traded funds (ETFs), has launched two new leveraged equity ETFs on the NYSE Arca, the Direxion Daily Brazil Bull 3x Shares ETF (BRZU) and Direxion Daily South Korea Bull 3x Shares ETF (KORU).

The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) recently published a warning about the dangers of investing in contracts for difference (CFDs), where losses can exceed an investor’s initial investment. The warning highlights the benefits of leveraged long and short exchange-traded products (ETPs), which provide an attractive, risk-controlled alternative to CFDs and spread betting.

While the US dollar is still the primary global currency, its long-term dominance is less certain, according to a report by the World Gold Council. With the dollar in apparent secular decline, central banks are reducing allocations to the currency while increasing purchases of traditional assets, such as gold. Investors looking to follow suit can access gold via physical ETPs, which combine the advantages of physical ownership with the liquidity, transparency and ease of execution typical of an ETF.

Leveraged exchange-traded funds (ETFs), which provide magnified exposure to various financial markets, have provided everyday investors with powerful hedging and speculative trading instruments that were once the reserve of institutional investors. These instruments typically provide two or three-times exposure – long or short – to a specific index tracking equities, bonds, commodities or currencies.