Global Short and Leveraged ETP assets rose by US$6.8 billion (15%) in the first six months of 2013 to US$50.9 billion, as investors continue to increase their usage of Short and Leveraged (S&L) ETPs.
As a result of this increased usage and interest in S&L ETPs, Boost has recently launched 16 new equity S&L ETPs, taking its platform to 36 ETPs and also launched a monthly Global Short & Leverage ETF / ETP Report and a Short & Leverage ETF / ETP Advisor Tool Kit.
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Global S&L market saw inflows of over US$2 billion in June as AUM reached US$50.9 billion, up nearly $7 billion this year.
Out of the US$50.9 billion of AUM currently held by S&L ETPs globally, Equities saw bullish flows in May with US$35.4 billion being held in S&L equity ETPs.
With the launch of Europe’s first Short and Leverage ETPs tracking the TOPIX index Japanese equities have also increased their net notional long positions by US$934 million.
S&L equity investors increased long positions and reduced short positions resulting in notional net long flows of US$4.1 billion in June.
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By GlobalDataThe figures showed of the US$4.1 billion of AUM held in S&L equity ETPs tracking Europe or European countries, 54% were held in Short equity ETPs with European equity indices experiencing increased net long positions.
Boost ETP’s figures showed that of the US$9.2 billion S&L fixed income ETPs, 98% being held in short fixed income ETPs resulting in the fixed Income investors to become consistent with an expected rise in interest rates .
The firm reported that of the US$3.9 billion held in S&L commodity ETPs, 51% are held in long commodity ETCs and 49% in short commodity ETCs.
On-exchange traded volumes for S&L ETPs have also increased from US$114 billion to US$195 billion per month, representing a 71% increase in this year.
The reasons behind the increased usage in S&L ETPs are wider product availability, greater product knowledge and increased demand for hedging tools and leveraged instruments due to current market conditions.
