Accessing leveraged ETPs: What does it really mean?

Attractive for short-term tactical strategies

In the latest insight into the intricacies of ETF trading, David Abner, head of Europe at WisdomTree, discusses how to access leveraged exchange-traded products (ETPs), their uses, advantages and pitfalls

The leveraged, inverse and commodity groups of funds always receive outsized media attention compared to the amount of the assets they manage. The reason for this is they have become very popular products for use in the statistical arbitrage, machine learning and investing communities. Moody's: Passives will overtake active funds in US by 2024 These products are very attractive for short-term tactical strategies and for use as short-term hedges without the need to roll futures. For advisers and investors, the ability to obtain leverage via equity-like products without using marg...