<\/strong><\/strong><\/p>\n
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– Sentiment in global equities soured as S&L investors repositioned with conviction: they redeemed $4.3 billion from long ETPs and poured $3.1 billion into short ETPs tracking major equity benchmarks<\/p>\n
– Zero and sub-zero rates environment has added to investors’ downbeat growth outlook. Bank of Japan’s (BoJ) negative deposit rate introduction accelerated bearish positioning in S&L Japanese equity ETPs: $590 million into short ETPs and $720 million outflows from long ETPs<\/p>\n
– Buoyed by the ECB’s March stimulus package, S&L investors increased their short exposure to German debt by $152 million<\/p>\n
– The rebound in oil prices encouraged opportunistic repositioning by S&L investors with $400 million outflows from long ETPs and $155 million inflows into short ETPs tracking crude oil<\/p>\n
BOOST ETP has announced the release of the Boost Short & Leverage ETFs\/ETPs Global Flows Report for March 2016. The report reveals the AUM of S&L ETPs at the end of March reached new record highs at $71 billion, up 4.9% YTD. The report demonstrates that investors globally continue to increase their usage of S&L ETPs.<\/p>\n
![\"18052016](\"http:\/\/starthostunlimiteddmffassi-ss.stackstaging.com\/etfworld.co.uk\/wp-content\/uploads\/2016\/05\/18052016_en.png\")
<\/p>\n
Nick Leung, Research Analyst at WisdomTree Europe, commented: <\/strong>“Global meltdown fears triggered significant bearish repositioning by S&L investors as heightened volatility pushed S&L AUM to new record highs of $71bn.<\/p>\n “Sentiment in global equities collapsed amidst an increasingly downbeat global growth outlook as S&L investors redeemed $4.3bn from long ETPs and poured $3.1bn into short ETPs tracking major equity benchmarks. US and South Korean equities suffered the heaviest punishment, with S&L investors responding to deepening concerns of a Chinese hard-landing and fresh fears of a European banking collapse with stark reversals in positioning. At the same time, the zero and sub-zero rates environment has also added to dampened global growth outlook; the BoJ’s negative deposit rate introduction accelerating risk-off positioning in S&L Japanese equity ETPs with $720 million outflows from long ETPs and $590 million into short ETPs. By contrast, S&L fixed income investors were buoyed by the ECB’s expanded March stimulus package, with falling Bund yields also compelling S&L investors to increase their short exposure to German debt. In commodities, the rebound in oil prices from January lows encouraged opportunistic repositioning by S&L investors with $400m outflows from long ETPs and $155m inflows into short ETPs tracking crude oil.”<\/p>\n Investors in S&L ETPs can express bullish as well as bearish sentiment by investing in either a leverage or a short ETP. Thus the AUM of S&L ETPs can reveal a broader range of investor sentiment than flows or AUM data for mutual funds and other ETPs. Since S&L ETPs tend to be held for shorter periods and used more for tactical positioning, AUM and flows data for S&L ETPs can provide valuable insight into the market sentiment of a relatively sophisticated set of investors. The BOOST Short & Leverage ETFs\/ETPs Global Flows Report highlights the key flows and trends in S&L ETPs across asset classes and geographies.<\/p>\n Today S&L ETPs cover all major assets classes and geographies. In terms of asset allocation at the end of March, equity ETPs are the most popular with 72% of total AUM ($52.6 billion), followed by debt (12%, $7.0 billion) and commodities (9%, $6.8 billion). In equities, most of the AUM is focused on US large cap and US small cap equities ($19.0 billion), Asia-Pacific equities ($15.9 billion) and European equities ($5.7 billion). In Europe, broad European indices are the most popular ($2.5 billion in AUM), followed by Germany ($1.4 billion), Italy ($552 million) and France ($566 million). In debt, most of the AUM is in US government debt ($3.6 billion), German government debt ($1.5 billion), and Italian ($254 million) and European-region focused ($216 million) government debt. In commodities, oil is the most popular ($4.4 billion in AUM), followed by gold ($705 million), natural gas ($637 million) and silver ($623 million).<\/p>\n Investors are increasingly using S&L ETPs for a variety of reasons. There is wider product availability, greater product knowledge from improved educational resources, and increased demand for hedging tools and leveraged instruments available. There is also a move towards independent, transparent and exchange traded instruments such as ETFs and ETPs.<\/p>\n Source: ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":" This year’s sharp correction in commodity and equity markets underpins fears of a China-led global slowdown. Triggering significant bearish repositioning by short and leverage (S&L) investors, global AUM of S&L ETPs rose to record highs of $71.2 billion…<\/p>\n","protected":false},"author":3,"featured_media":17853,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[12],"tags":[148],"class_list":["post-15411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-etf-analysis","tag-wisdom-tree-europe-boost-etp"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/15411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/comments?post=15411"}],"version-history":[{"count":0,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/15411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media\/17853"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media?parent=15411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=15411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=15411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}