- Global S&L AUM remains at around $52bn, up nearly $7bn this year
- Of the $34.4bn in S&L equity ETPs, 59% is long, up from 54% in August. S&L equity inflows totalled $865m in October
- Fixed income investors remain unanimously bearish
- Commodity ETP investors were bullish on oil and natural gas, while remaining indecisive on gold and silver in October
- Trading volume in BOOST ETPs up 5x since start of September with record inflows into a variety of indices and leverage factors
BOOST ETP, the award winning and independent exchange-traded product (NYSE:ETP) provider, has released its Global Short & Leverage ETF/ETP report for October 2013. Global Short and Leveraged (S&L) ETP assets have risen by $6.6bn (15%) in the first ten months of 2013 to $51.5bn, as investors continue to increase their use of S&L ETPs. Demand for S&L ETPs was also supported by volumes in BOOST ETPs having risen by 5x since early September.
Of the $51.1bn of AUM currently held by S&L ETPs globally:
- $34.4bn is held in S&L equity ETPs. In October, S&L equity ETPs experienced $865 million of inflows in October and $5 billion YTD
- Equity ETPs: $4.5bn of AUM is held in S&L equity ETPs tracking Europe or European countries, of which 42% is held in long ETPs and 58% is held in short ETPs, with the largest positions in German ($1.2 billion), broad European ($760 million), Italian ($695 million) and French ($614 million) equities
- Fixed income ETPs: $9.4bn is held in S&L fixed income ETPs, of which 98% is held in short ETPs, which is consistent with a strong expectation of rising interest rates
- Commodity ETPs: Currently there is $4.5 billion of AUM held in S&L commodity ETPs of which 56% is held in long commodity ETPs and 44% is held in short commodity ETP, with the highest net inflows going to natural gas ($135 million) and silver ($10 million), while gold and oil experienced outflows of $27 million and $26 million respectively
BOOST ETP is also experiencing rising investor demand for its robust and transparent S&L ETPs. BOOST ETP listed eight new 3x Short and 3x Leveraged ETPs on the Borsa Italiana for the first time on 31 October 2013. BOOST ETPs had a 6.1% market share in the ETP segment of Borsa Italiana's ETFPlus platform. Over recent weeks, BOOST has had record breaking inflows into 3x Leverage Oil, 3x Leverage Natural Gas, 3x Short FTSE MIB, 2x Short FTSE 100 and 1x Short FTSE 250. In total, there was $10m of inflows. November's trading volumes are up 5x (500%) compared to early September.
BOOST offers a platform of Short and Leverage equity ETPs and commodity ETCs giving exposure to a wide variety of leverage factors ranging from -3x to +3x.
Nik Bienkowski, Co-CEO of BOOST ETP, commented:
"Equities continued their rise in October after a strong September with Boost LevDAX 3x Daily ETP (3DEL) returning 18.3% (in GBP) for October. October also saw the launch of 3x equity ETPs and 3x commodity ETCs on Borsa Italiana. Italian investors have already taken to short and leveraged ETPs. The most traded ETPs on Borsa Italiana are ETPs providing leverage exposure to the FTSE MIB and Natural Gas."
"Global demand for S&L ETPs is continuing at a rapid pace in 2013, with Global AUM in Short and Leverage ETPs reaching $52 billion up $6.6 billion this year. Boost experienced a record breaking week last week with significant inflows and trading volumes across a wide range of indices and leverage factors from 1x Short FTSE 250 to 3x Leverage Oil. Boost ETPs are liquid, robust and transparent and as a result, investors are starting to take to the Short and Leverage offering from Boost ETP."
Investors are increasingly using S&L ETPs for a variety of reasons. There is wider product availability, greater product knowledge from improved educational resources and increased demand for hedging tools and leveraged instruments. There is also a move towards independent, transparent and exchange traded instruments such as ETFs and ETPs. As a result of this increased usage and interest in S&L ETPs, BOOST recently launched a monthly Global Short & Leverage ETF / ETP Report and a Short & Leverage ETF / ETP Advisor Tool Kit.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.