Societe Generale (SG) is the first issuer to make thematic indices available on the ETFplus segment of Borsa Italiana through ETN. These are products characterized by the presence of a collateral in favor of investors to mitigate the counterparty risk (whose composition is in line with the UCITS regulations in terms of quality and diversification).
The four new SG ETNs on equity indices are linked to four major investment themes. Three have as their underlying thematic indices to take a position on investment ideas anchored to medium / long-term trends such as technology and the search for alternative energy sources: metaversol’uranium miningl’hydrogen. The thematic indices replicated by these ETNs are made by Solactive and are the Solactive Metaverse Select Index CNTR, the Solactive Uranium Mining Index CNTR and the Solactive World Hydrogen Index CNTR.
They are joined by a fourth thematic ETN, which replicates the MIB ESGthe equity index dedicated to blue-chips listed on the Italian Stock Exchange that present the best practices in environmental, social and governance (ESG) matters.
How do they work?
These instruments replicate (gross of costs, taxes and other charges) the performance of the underlying index. SG ETNs they do not have a predefined expiration date (open-end). Their redemption may take place at the decision of the Issuer or the investor according to the procedures set out in the Final Terms of the product. The investor can also sell the product on ETFplus, on which Societe Generale has undertaken intraday liquidity commitments.
SG ETNs are denominated and traded in Euro without hedging the exchange risk deriving from the shares included in the underlying index and denominated in a currency other than the Euro. These are complex tools that they do not provide for a capital guarantee and expose you to a maximum loss equal to the capital invested. SG ETNs are issued by SG Issuer, have Societe Generale as guarantor and are backed by a collateral for the benefit of the products.
Not only ETN but also ETC
Societe Generale has other news for the Italian market. Even the raw material play an important role in the new range: there are 18 listed ETCs that allow you to take a position on Futures on Oil WTI and Brent, on Gold, on Silver and on Copper in a linear way, with different long levers (+ 2x, + 3x) or short (-1x, -3x). The new issue also covers equity underlyings (S&P500 con leva 3, long e short), bonds (BTP, Bund and US Treasury futures with 5 leverage, long and short), and is complemented by a linear ETN that replicates the Future su VIXan indicator of implied volatility.
Thanks to this new issue ETCs / ETNs rose to 46 of SGs listed on the ETFplus, which allow you to take a position on 18 underlyings including indices (thematic or geographic such as FTSE MIB), Futures on raw materials (eg Future on Natural Gas, in addition to the commodities on which the recent issue has focused) , Bond Futures and VIX Futures.
New certified turbos on the way
At the same time, on the certificate front, SG decided to enter the Turbo segment, thus expanding the range of leveraged instruments that it makes available to traders and investors: the new Turbo certificates will be listed in the coming weeks and will allow SG (already a leader on fixed-leveraged certificates with 69.3% of the exchange value) to also oversee the segment of variable leverage certificates.
“Innovation in product structures, search for new underlyings, quality of market making, timeliness in providing tools capable of meeting specific needs of investors, also allowing them to easily access current / medium-term trends or new ideas for investment. These are the four pillars on which SG’s ambition to consolidate and increase its leadership in the field of listed products in Italy rests. On the SeDeX we can already boast a consolidated leadership; in 2021 SG confirmed its leadership for the seventh consecutive year with a share of 31.4% of the negotiated value “he commented Costanza MannocchiHead of Exchange Traded Products di Societe Generale in Italia.