WisdomTree Launches Four New Sector-Focused Tactical ETPs

WisdomTree has expanded its range of tactical ETPs with the launch of four sector focused short and leveraged products. Listed today on the London Stock Exchange, Borsa Italiana and Borse Xetra, the ETPs have management expense ratios of between 0.80% and 0.85%.

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Alexis Marinof, Head of Europe, WisdomTree

The new ETPs provide 2x leveraged and/or 2x short/inverse exposure to the STOXX Europe 600 sector indices including Travel & Leisure, Automobiles & Parts, and Oil & Gas.

WisdomTree’s new tactical ETPs consist of:

    WisdomTree STOXX Europe Travel & Leisure 2x Daily Leveraged  (2TRV)

    WisdomTree STOXX Europe Travel & Leisure 2x Daily Short (2STR)

    WisdomTree STOXX Europe Automobiles 2x Daily Leveraged  (2CAR)

    WisdomTree STOXX Europe Oil & Gas 2x Daily Short  (2OIG)

Pierre Debru, Head of Quantitative Research & Multi Asset Solutions, Europe, WisdomTree said: “Investors frequently look for opportunities to express high conviction views on markets and require robust tools to be able to manage their portfolio exposures. Whether investors are looking to magnify daily returns through positive or inverse leverage, taking hedging positions or seeking to deploy more sophisticated strategies, the ability to trade S&L ETPs quickly and efficiently makes them a preferred trading tool. Our new launches give investors an even wider suite of products to choose from to express their investment views on the post-COVID economic recovery and the inevitable energy transition megatrend.”

S&L ETPs multiply 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 effects of compounding, short and leveraged ETPs are not suitable for passive investors employing a traditional buy and hold strategy. WisdomTree recommends a one day holding period for S&L ETPs. It’s important for investors to understand the product attributes and all the associated risks before investing in S&L ETPs. Investors seeking education about the opportunities and the risks presented by short and leveraged ETPs can access a wide range of educational material around S&L ETPs on the dedicated section of the WisdomTree website.

Alexis Marinof, Head of Europe, WisdomTree added: “As the European leader in short and leverage ETPs, we remain committed to providing investors with the broadest range of tactical trading tools available on the market. These launches complement our existing range of solutions and are specifically designed to help investors navigate dynamic financial markets and challenging economic climates. We will continue to take a thoughtful approach to product development and look at opportunities to deliver the exposures investors want in their portfolios.”

WisdomTree’s tactical product suite has $1.84bn in assets under management1 and consists of 111 S&L ETPs in Europe, covering major asset classes, such as equities, commodities, fixed income, alternatives, and currencies.

The ETPs are registered for sale in Austria, Germany, Ireland, Italy, Norway and the UK.

Product information

Source: ETFWorld.co.uk