WisdomTree Europe

Boost Short & Leveraged ETPs Reach Record $503m AUM as Market Volatility Spikes

WisdomTree Europe, an exchange traded fund (“ETF”) and exchange traded product (“ETP”) sponsor, and specialist in short and leverage (S&L) ETPs through the Boost ETP product range, is proud to announce a record $503m of AUM as of 31st of August following a week of record trading volumes.

European S&L ETPs in general saw record turnovers recently, led by S&L oil ETPs which experienced turnovers of $266m3. Boost ETPs emerged again as the tool of choice for investors, with Boost’s oil ETPs contributing 64% of S&L oil trading in Europe, and 58% of trading in S&L commodity ETPs overall4. Boost also had the highest turnover in natural gas, gold and silver S&L ETPs. Over the last week of August, as WTI surged 29%, Boost Crude Oil 3x Leverage Daily ETP (3OIL) rose by 101%5 and AUM hit a record $216m6.

The recent heightened volatility began as weaker-than-expected Chinese manufacturer sentiment data triggered a dramatic collapse on the Chinesestock market with global equities quickly following suit. The slump in manufacturer sentiment deeper into contractionary territory also triggered fresh concerns over the global excess in crude oil. However, with the EIA reporting lower-than-estimated US oil production and with OPEC hinting at possible talks with producers, WTI rebounded sharply by 27% in only three days on the back of this news7.

Nik Bienkowski, Co-CEO of WisdomTree Europe had this to comment:
“Reaching the $500m AUM mark signifies investors’ increased usage of the Boost platform for trading and hedging needs. The last week or so was a prime example of the usefulness of S&L oil ETPs in a volatile market. Most of the action was in oil. Boost’s 3x Leverage Oil (3OIL) and 3x Short Oil (3OIS) ETCs continued to demonstrate the best liquidity, with twice the turnover of any other S&L oil ETP, as well as the most favourable spreads. Our investors have been positioning bullishly in oil with positions being added as oil declined in prior sessions. Investors had over 82% of oil AUM in (long) leveraged ETCs just before the price of oil rebounded 27% over the last 3 days of August, with the price of Boost’s 3OIL rising 96% and 3OIL AUM reaching a record $216m8”.
“Boost’s total AUM more than tripled in the past year from $130m to $503m9. Trading volumes have also been on the increase, topping $3bn in notional turnover in August having risen from just over $500m the same time last year10. This trend reflects the confidence of investors in Boost’s structure, the market-leading liquidity of the ETPs, a better understanding of the capital-efficiency short & leveraged ETPs offer, and a platform of many leading benchmarks in equities, commodities, FX and fixed income”.

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