WisdomTree has expanded its suite of inverse and leveraged ETPs in Europe with new products covering French equities and European banking stocks.
Pierre Debru, Head of Quantitative Research & Multi Asset Solutions, Europe, WisdomTree.
The WisdomTree CAC 40 3x Daily Leveraged ETP (3CAC) and WisdomTree CAC 40 3x Daily Short ETP (3CAS) are the only ETPs in Europe providing triple the daily return and triple the inverse daily return of the flagship CAC 40 Index.
The CAC 40 covers 40 of the most significant companies amongst the 100 largest stocks trading on Euronext Amsterdam.
3CAC and 3CAS come with management expense ratios (MER) of 0.75% and 0.80%, respectively. The ETPs have been listed on Deutsche Börse Xetra and Euronext Paris in euros.
The WisdomTree EURO STOXX Banks 3x Daily Short (3BAS), meanwhile, has been listed on London Stock Exchange in pound sterling as well as on Xetra and Borsa Italiana in euros. The ETP complements the existing WisdomTree EURO STOXX Banks 3x Daily Leveraged ETP (3BAL).
3BAL and 3BAS deliver triple the daily return and triple the inverse daily return, respectively, of the Euro Stoxx Banks Index which covers companies that are classified within the banking industry and listed within developed market eurozone countries.
Each ETP comes with an MER of 0.89%.
Due to the daily leverage and effects of compounding, inverse and leveraged ETPs are not suitable for passive investors employing a traditional buy-and-hold strategy. Instead, they are designed for tactical and short-term trading with a recommended holding period of one day.
Pierre Debru, Head of Quantitative Research & Multi Asset Solutions, Europe, WisdomTree, commented: “In the current economic landscape, investors need an extensive range of tools to navigate financial markets, whether that is to magnify daily returns, hedge positions, or to deploy more sophisticated strategies. Tactical exposures through short and leveraged ETPs can play a complementary role to long-term strategic holdings, allowing investors to express high conviction views and take advantage of market dislocations quickly and efficiently.”
Alexis Marinof, Head of Europe, WisdomTree, added: “We continuously look for ways to add value to investors’ portfolios and deliver thoughtful exposures to help investors achieve their financial goals. For over 15 years, we have been launching innovative ETPs, and the launch of the triple inverse and leveraged CAC 40 ETPs is the latest example in our rich history.”