WisdomTree completes acquisition of short and leveraged ETP specialist Boost

Apr 18th, 2014 | By | Category: Alternatives / Multi-Asset

WisdomTree Investments, a New York-based provider of exchange-traded funds, has completed the acquisition of Boost ETP, a London-based issuer of short and leveraged products.

WisdomTree completes acquisition of short and leveraged ETP specialist Boost

Jonathan Steinberg, CEO and President of WisdomTree Investments. (File image. © The NASDAQ OMX Group, Inc.)

The acquisition formally cements WisdomTree’s expansion into Europe.

Listed on Nasdaq, WisdomTree is the world’s eighth largest ETF sponsor and currently offers 67 ETFs across equities, fixed income, currencies and alternative asset classes, equating to approximately $33.1 billion in assets under management.

With the acquisition complete, WisdomTree will commence the previously announced build-out of a local European platform to offer a select range of UCITS ETFs under the WisdomTree brand and continue to manage and grow the Boost line-up of short and leveraged ETPs under the Boost brand.

Jonathan Steinberg, President and CEO of WisdomTree, commented: “We are excited to deepen and expand our offerings as the world’s eighth largest ETF sponsor and look forward to serving the European market.”

Hector McNeil and Nik Bienkowski, co-founders of Boost and veterans of Europe’s ETF industry, will serve as co-CEOs of WisdomTree Europe. A statement issued by the pair said: “We look forward to continuing to grow the Boost ETP family under WisdomTree and we are pleased to lead the platform for WisdomTree’s European ETF plans.”

WisdomTree’s acquisition comes at a time when the Boost product suite is gaining traction among investors and AUM growth is gathering momentum. The firm recently revealed that assets under management across its short and leveraged ETP range had reached $97m, just shy of the psychologically important $100m mark. This is up 130% since January 2014 and 450% over the past 12 months. Trading volumes have also increased, to more than $200m in March 2014.

According to Bienkowski: “We have seen turnovers climb to over $200 million in March, tightened spreads and increased order flow. In the UK and in Italy we see investors asking not only for tactical tools to express their directional view, but also for effective hedging tools which allow them to use their capital efficiently. Crucially, investors show that they understand the versatility of short & leveraged ETPs, and how they can be used to add value in a wide range of market environments.”

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