Who's good with leveraged instruments?

Sure, let me give it a try @Rygel :slight_smile:

  • WisdomTree: They have leveraged ETPs across multiple asset classes like commodities, indices, fixed income, etc. - and with multiple leverage factors. Nothing on single stocks. From what I was able to find, they are swap-based (synthetic), meaning the ETP issuer basically enters into an agreement with a counterparty (usually a major bank) where the bank agrees to provide the leveraged return of the underlying for a fee.

  • GraniteShares: Their ETPs are structured in a similar way to WisdomTree’s (synthetic), but they offer ETPs on single stocks (some UK and some US names). Also, the leverage factors offered are +3x and -3x and are traded in $.

  • Leverage Shares: The ETPs are also on single stocks (for now :wink: ) and track mainly US names and a few Asian ones. They are physically backed. Put simply, this means that for every $100K of 2x Apple ETP issued, the company purchases 200K worth of actual Apple stock to be held as collateral. Leverage factors offered are -1x, +2x and +3x and trade in ÂŁ, € and .

That said, swap-based (synthetic) ETPs still have very strict collateral requirements, meaning they need to have cash or other liquid holdings to make sure the ETPs are backed (in case something happens to their counterparty or to the issuer itself).

Hope this clarifies a few questions. Feel free to reach out if anything is unclear - I’m more than happy to help (if I can, of course)!