Leverage Shares becomes first European provider to offer 0% fee on equity ETPs

by uma
Editorial & Advertiser disclosure
  • Removes management fees on inverse Tesla ETPs 

London, UK – 30 March 2022 – Leverage Shares, a pioneer in the market of single-stock trackers,  short and leveraged Exchange Traded Products (ETPs), has today cut the management fees to zero  on its ETPs that provide short exposure to Tesla. The affected ETPs are: 

  • Leverage Shares -3X Short Tesla ETP (XS2337090265)  
  • Leverage Shares -2X Short Tesla ETP (XS2297550134)  
  • Leverage Shares -1X Short Tesla ETP (IE00BKT6ZH01) 

This makes Leverage Shares the first issuer to offer 0bps (0%) management fees on equity ETPs in  Europe. This “fee holiday” will be maintained for at least 6 months until 30 September 2022, with a  possibility of extending it. 

Leverage Shares is the only provider in Europe that offers physical replication of short and leveraged ETPs. Among its listings is the Leverage Shares 3x Tesla ETP, the most traded stock on the London  Stock Exchange (based on number of trades) in 2022, and the more recently launched Leverage  Shares 3x short and long ARK Innovation ETPs. 

On 28 March Tesla revealed plans to seek approval for a stock split which, if successful, will be the  second split in two years. Despite Tesla shares experiencing an impressive rally this year, some  investors believe that shares are trading at a valuation that is removed from fundamentals. 

The company’s short and leveraged ETPs are an efficient way for investors to trade with conviction  and mitigated risk as they do not require a margin account. In this way the downside is limited only to  the amount invested. 

Raj Sheth, commercial director at Leverage Shares, says: “We wanted to make our investors aware  that, at this frothy Tesla prices, our short Tesla ETPs can be useful tools to hedge any long-term  exposures to Tesla or to profit more tactically from price drops. Our 3x Tesla ETP is the most traded  ETP on the LSE (by number of trades), but investors should have our full product suite at their  disposal and pivot between long and short positions as their conviction dictates.” 

Other popular ETPs include 3x leveraged ETPs of Microsoft (MSF3), Alphabet (GOO3), NIO (NIO3),  Meta (3FB), Netflix (NFL3) and 2x leveraged Berkshire Hathaway (BRK2) as investor interest has  recently been targeted towards leveraged versions of stocks hit hard during earnings season and by  the big tech correction.  

Leverage Shares other ETPs mimic the daily return of an underlying asset multiplied by a leverage  factor of +5x, +3x, +2x, -1x, -2x and -3x. They provide leveraged exposure to globally popular names  including Tesla, Berkshire Hathaway, Amazon, Alibaba, Microsoft and Netflix, as well as FTSE100  equities, such as Vodafone. 

The ETPs are also listed on the London Stock Exchange, Euronext Paris and Euronext Amsterdam.  Investors can trade a stock in their own time zone and currency (USD, EUR and GBP) without paying  high FX fees, even if the company is listed elsewhere.  

 

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