WisdomTree has expanded its range of thematic short and leveraged (S&L) ETPs with the launch of 3x short and leveraged Magnificent 7 and semiconductor equity exposures.
Listed today on the Borsa Italiana, London Stock Exchange, and Borse Xetra, the new ETPs have management expense ratios of 0.75 per cent.
The ETPs listed are:
WisdomTree Magnificent 7 3x Daily Leveraged (3MG7)
WisdomTree Magnificent 7 3x Daily Short (3M7S)
WisdomTree PHLX Semiconductor 3x Daily Leveraged (3SEM)
WisdomTree PHLX Semiconductor 3x Daily Short (SC3S)
The new S&L ETPs provide 3x daily leveraged and 3x short/inverse exposure to the WisdomTree US Bluechip Select Index (NTR) and PHLX Semiconductor Sector Net Total Return Index.
Pierre Debru, Head of Research, Europe, WisdomTree, says: “The launch of these short and leveraged ETPs on the Magnificent 7 and semiconductor sector provides investors with tactical ways to express high-conviction views on areas that continue to play an outsized role in market dynamics. These exposures reflect key themes from the concentration of equity returns to the expanding role of AI in global growth. In the current environment, the ability to adjust exposure with flexibility, whether to participate in ongoing trends or navigate potential short-term reversals, can be a useful addition to an investor’s toolkit.”
The firm writes that S&L ETPs amplify both the positive and negative returns of an investment. A leveraged position’s potential returns and losses will be greater than the equivalent unleveraged position and due to the daily leverage and its compounding effect, short and leveraged ETPs are unsuitable for investors employing a traditional buy-and-hold strategy. S&L ETPs have a recommended holding period of one day and are designed for tactical and short-term trading. It is essential 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, CEO, Europe, WisdomTree, says: “As one of Europe’s leading providers of short and leveraged ETPs, we aim to bring exposures to market where we see meaningful potential for tactical deployment. By combining our expertise in thematic investing with our strength in S&L strategies, we’ve introduced new tools that align with investor interest in the Magnificent 7 and semiconductors, two key equity themes and sectors. These launches are built for investors looking to tactically manage risk or express high-conviction views, with the flexibility to respond to short-term market moves with precision and intent.”
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