Leverage Shares has cross-listed its entire suite of 40 inverse and leveraged single-stock ETPs to Euronext Amsterdam.
The new listings provide another trading venue for the ETPs which are also available on London Stock Exchange.
The ETPs offer inverse (-1x), double leveraged (2x), or triple leveraged (3x) exposure to the return on popular US-listed stocks, reset daily.
Current inverse and leveraged ETPs typically use derivatives, such as swaps, to achieve their leverage, introducing credit risk to investors.
Leverage Shares ETPs, however, do away with credit risk and are fully backed by purchasing the underlying stocks directly – using proceeds from the issuance of the ETPs and a margin loan.
Residual cash, such as dividends from the underlying stocks, is also reinvested.
According to Leverage Shares, the firm’s ability to access margin borrowing at institutional rates allows it to offer its products to investors at a competitive rate. Each ETP comes with an expense ratio of 0.75%.
Inverse and leveraged ETPs can be considered inappropriate for retail investors who perhaps might not fully understand the risks involved. Specifically, these products tend to decay in value if held for an extended period of time, potentially leading to significant losses, especially in volatile but range-bound markets.
For sophisticated traders, however, they can offer an efficient means to hedge existing positions or take out new tactical exposures.
Leverage Shares’ ETPs are linked to some of the world’s most exciting companies, from tech titans such as Apple, Microsoft, and Google to innovative consumer discretionary plays like Netflix, Amazon, and Tesla.
Oktay Kavrak, Product Strategy at Leverage Shares, commented: “This is about democratising access to strategies once reserved for fund managers, like trading with leverage and going short. What we have been seeing is that European investors have an appetite for trading with conviction, yet the majority prefer doing so on a regulated exchange. Our ETPs trade like any other stock or ETF and have tight on-screen quotes throughout the day by multiple market makers.
“We are proud to expand access to these powerful tools to an even wider audience, courtesy of Euronext. With volatility not expected to subside anytime soon, investors can express their convictions on these market leaders in both directions – all through the convenience of a brokerage account.”
Brieuc Louchard, Head of ETFs for Euronext, added: “We are delighted to continually offer a wide range of innovative products, expanding the pool of trading instruments for global investors. The listing of Leverage Shares ETPs will bring advanced tools to investors of all types, allowing them to benefit from stock trends. We are delighted to welcome the physically replicated ETPs from Leverage Share on our markets.”
The ETPs, which have listed on Euronext Amsterdam in euros, are outlined below.
Leverage Shares 3x Alphabet ETP (3GOO NA)
Leverage Shares 3x Amazon ETP (3AMZ NA)
Leverage Shares 3x Apple ETP (3AAP NA)
Leverage Shares 3x Facebook ETP (3FB NA)
Leverage Shares 3x Microsoft ETP (3MSF NA)
Leverage Shares 3x Netflix ETP (3NFL NA)
Leverage Shares 3x NVIDIA ETP (3NVD NA)
Leverage Shares 3x Salesforce.com ETP (3CRM NA)
Leverage Shares 2x Advanced Micro Devices ETP (2AMD NA)
Leverage Shares 2x Alibaba ETP (2BAB NA)
Leverage Shares 2x Alphabet ETP (2GOO NA)
Leverage Shares 2x Amazon ETP (2AMZ NA)
Leverage Shares 2x Apple ETP (2AAP NA)
Leverage Shares 2x Citigroup ETP (2CIT NA)
Leverage Shares 2x Facebook ETP (2FB NA)
Leverage Shares 2x Goldman Sachs ETP (2GS NA)
Leverage Shares 2x JPMorgan ETP (2JPM NA)
Leverage Shares 2x Micron Technology ETP (2MU NA)
Leverage Shares 2x Microsoft ETP (2MSF NA)
Leverage Shares 2x Netflix ETP (2NFL NA)
Leverage Shares 2x NVIDIA ETP (2NVD NA)
Leverage Shares 2x Salesforce.com ETP (2CRM NA)
Leverage Shares 2x Tesla ETP (2TSL NA)
Leverage Shares 2x Twitter ETP (2TWT NA)
Leverage Shares 2x Uber ETP (2UBR NA)
Leverage Shares 2x Visa ETP (2VIS NA)
Leverage Shares -1x Advanced Micro Devices ETP (SAMD NA)
Leverage Shares -1x Alibaba ETP (SBAB NA)
Leverage Shares -1x Alphabet ETP (SGOO NA)
Leverage Shares -1x Amazon ETP (SAMZ NA)
Leverage Shares -1x Apple ETP (SAPL NA)
Leverage Shares -1x Facebook ETP (SFB NA)
Leverage Shares -1x Micron Technology ETP (SMU NA)
Leverage Shares -1x Microsoft ETP (SMSF NA)
Leverage Shares -1x Netflix ETP (SNFL NA)
Leverage Shares -1x NVIDIA ETP (SNVD NA)
Leverage Shares -1x Salesforce.com ETP (SCRM NA)
Leverage Shares -1x Tesla ETP (STSL NA)
Leverage Shares -1x Twitter ETP (STWT NA)
Leverage Shares -1x Uber ETP (SUBR NA)
The products are already available on London Stock Exchange with US dollar, pound sterling, and euro trading lines.