Debut on Borsa Italiana’s ETFPlus of the 32nd issuer which presents itself in front of Italian investors with a selection of 15 ETPs that allow you to go long and short on some of the major Wall Street shares such as Tesla, Amazon and Apple. The offer of Leverage Shares products differs from that of active competitors on leveraged products on single shares as it is thethe only broadcaster in Europe to offer them in physical replication.
“Being the only player in Europe to use physical replication for this type of product is a very solid competitive advantage, which Italian traders and investors will certainly be able to recognize – he remarked Piero Guseo, responsible for the Italian market and Senior Institutional Sales of Leverage Shares, on the occasion of the debut in Italy of the new ETPs -. The Italian market, in fact, is ripe for this type of innovation. The interest of traders and investors in leveraged products – ETPs or certificates – started years ago ”.
Leverage Shares focuses on products linked to single stocks in the first step in the Italian Stock Exchange “in the belief that traders and investors know how to appreciate the advantages of leveraged products listed on the stock exchange over CFDs”, explains Guseo.
“It is about democratizing access to strategies in the past reserved only for fund managers, such as leveraged trading or the possibility of going short – remarks Piero Guseo -. Investors have a growing appetite for trading, but the majority of them prefer to use a regulated exchange. Our ETPs are traded like any other stock or ETFwith a liquidity guaranteed throughout the day by multiple market makers“. Leverage Shares ETPs are UCITS eligible and can rely on the market making activity of BNP Paribas.
Leverage Shares currently has 145 physically replicated ETPs listed on foreign markets. During the month of January, the total turnover of Leverage Shares products on LSE and Euronext was nearly $ 400 million and the 3x long leveraged ETP on Tesla was the second most traded in London.
Leverage Shares not yet present in Italy are also included in the range of ETPs sectoral / thematic leveraged instruments which have as underlying other ETFs which are physically replicating themselves. Among these also stand out ETPs linked to the ARK ETFs, major overseas players in 2020. The Leveraged ETPs linked to ARK ETFs were launched in December and Leverage Shares is analyzing their performance and will evaluate whether to propose them also in Italy. The offer of ETPs with underlying Italian shares is also under consideration. “The idea is there, even if the direct purchase involves some problems to be solved. For now, we have decided to limit the offering to underlying stocks listed on Wall Street, ”Guseo said.
How single stock ETPs work
Long and short leveraged ETPs are designed to track the daily return of the relevant underlying security, multiplied by one leverage factor 3x (triple leverage) in the case of ETP Leverage Shares or -3x (reverse leverage). Each ETP is fully physically secured through the underlying shares, avoiding the counterparty risk found in non-physically replicated products. Each ETP aims to deliver three times the performance (3X) of the underlying it tracks. Reverse leveraged products (-3X) replicate the performance of the underlying stock in reverse. Therefore, a 1% depreciation of the share will result in a triple gain, and vice versa. Products are rebalanced every day, to provide the same leverage factor the next day.
These are tools that are clearly suitable for pure trading, but not only. “Leverage gives you the ability to better manage your resources over time. They are products that can be used in various ways, for example by combining upward and downward instruments in order to implement long-short strategies ”, explains Guseo.
Comparison with options, futures and CFDs
ETP holders do not incur margin calls or overnight fees by paying one commission of 0.75% per annum and standard market margin rates plus cash collateral yields.
The 15 products listed today on the Italian Stock Exchange
Leverage Shares has brought 15 instruments to Italy that allow you to take a position with take 3X on individual stocks of leading companies globally in the tech, fintech, healthcare and automotive sectors, all denominated in euros. In detail, the underlying stocks are: Tesla (for which both the long and short versions are expected), Alibaba, NVIDIA, PayPal, Facebook, Microsoft, Apple, Baidu, Amazon, Moderna, Alphabet, Palantir, NIO, Coinbase.
| Product name | RAY | Below | takes her |
| Leverage Shares 3x Tesla ETP Securities | XS2297549128 | Tesla | Long |
| Leverage Shares -3x Short Tesla ETP Securities | XS2337090265 | Tesla | Short |
| Leverage Shares 3x Alibaba ETP Securities | XS2337090851 | Alibaba | Long |
| Leverage Shares 3x NVIDIA ETP Securities | IE00BK5BZR99 | NVIDIA | Long |
| Leverage Shares 3x PayPal ETP Securities | XS2297550217 | PayPal | Long |
| Leverage Shares 3x Facebook ETP Securities | IE00BK5C1B80 | Long | |
| Leverage Shares 3x Microsoft ETP Securities | IE00BK5BZV36 | Microsoft | Long |
| Leverage Shares 3x Apple ETP Securities | IE00BK5BZS07 | Apple | Long |
| Leverage Shares 3x Baidu ETP Securities | XS2337092808 | Baidu | Long |
| Leverage Shares 3x Amazon ETP Securities | IE00BK5BZQ82 | Amazon | Long |
| Leverage Shares 3x Long Moderna (MRNA) ETP Securities | XS2399365639 | Modern | Long |
| Leverage Shares 3x Alphabet ETP Securities | IE00BK5BZX59 | Alphabet | Long |
| Leverage Shares 3x Palantir ETP Securities | XS2337085851 | Palantir | Long |
| Leverage Shares 3x Long NIO ETP Securities | XS2399365472 | NIO | Long |
| Leverage Shares 3x Long Coinbase (COIN) ETP Securities | XS2399367254 | Coinbase | Long |