WisdomTree adds three ETPs to short and leveraged ETP range

The Armchair Trader’s partner, WisdomTree has launched three short and leveraged (S&L) ETPs, covering French equities and European banks. The launches build on WisdomTree’s comprehensive range of tactical trading tools available to European investors.

The WisdomTree CAC 40 3x Daily Leveraged (3CAC) and WisdomTree CAC 40 3x Daily Short (3CAS) have listed on Börse Xetra and Euronext Paris with management expense ratios (MER) of 0.75% and 0.80%, respectively. WisdomTree is the only ETP provider in Europe to provide 3x daily short and leveraged CAC 40 exposures.

The WisdomTree EURO STOXX Banks 3x Daily Short (3BAS) has listed on London Stock Exchange, Börse Xetra and Borsa Italiana with an MER of 0.89%.  The ETP complements the existing WisdomTree EURO STOXX Banks 3x Daily Leveraged ETP.

Pierre Debru, Head of Quantitative Research & Multi Asset Solutions, Europe, WisdomTree, said: “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.”

S&L ETPs amplify both the positive and negative returns of an investment. The potential returns and losses from a leveraged position will be greater than from the equivalent unleveraged position. Due to the daily leverage and effects of compounding, short- and leveraged ETPs are not suitable for passive investors employing a traditional buy and hold strategy and are designed for tactical and short-term trading with a recommended holding period of one day. It’s important for investors to understand the product attributes and all the associated risks before investing in S&L ETPs.

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 3x short and leveraged CAC 40 ETPs is the latest example in our rich history.”

On 31 July 2023, WisdomTree cross-listed the WisdomTree WTI Crude Oil 3x Daily Short, WisdomTree WTI Crude Oil 3x Daily Leveraged, WisdomTree Brent Crude Oil 2x Daily Leveraged and WisdomTree Industrial Metals – EUR Daily Hedged ETPs on Börse Xetra.

WisdomTree’s short and leveraged ETP range is the most comprehensive in Europe and has $1.8bn in assets under management^[2] and consists of 112 S&L ETPs, covering major asset classes, such as equities, commodities, fixed income, alternatives, and currencies.

The ETPs are registered for sale in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Spain, Sweden and the UK

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