please help improve it or discuss these issues on the talk page . learn how and when to remove these template messages this article contains content that is written like an advertisement . please help improve it by removing promotional content and inappropriate external links and by adding encyclopedic content written from a neutral point of view . october 2013 learn how and when to remove this template message the topic of this article may not meet wikipedia s notability guidelines for companies and organizations . please help to establish notability by citing reliable secondary sources that are independent of the topic and provide significant coverage of it beyond its mere trivial mention . if notability can not be established the article is likely to be merged redirected or deleted . find sources boost etp news newspapers books scholar jstor free images october 2013 learn how and when to remove this template message this article may contain an excessive amount of intricate detail that may only interest a specific audience . please help by spinning off or relocating any relevant information and removing excessive detail that may be against wikipedia s inclusion policy . october 2013 learn how and when to remove this template message this article contains embedded lists that may be poorly defined unverified or indiscriminate . please help to clean it up to meet wikipedia s quality standards . where appropriate incorporate items into the main body of the article . october 2013 learn how and when to remove this template message boost etp llp . type subsidiary industry financial services founded 2012 headquarters london uk key people ian hector mcneil co ceo nik bienkowski co ceo products exchange traded products exchange trade commodities asset management parent wisdomtree investments website boostetp.com boost etp is an independent boutique exchange traded products etp provider based in london united kingdom . boost etp is the first asset management firm in europe to offer 3x leveraged etps and 3x short etps . 1 the first boost etp products became available on 6 december 2012 on the london stock exchange . 2 contents 1 history & motivation 2 product structure 3 key partners 4 leveraged exchange traded products exchange traded funds 4.1 leveraged etfs etps 4.1.1 rebalancing method 5 boost etp products 6 awards 7 issuers of etfs 8 references history & motivation edit boost etp llp was set up by ian hector mcneil and nik bienkowski former managing partners of etf securities . 3 4 5 on 11 december 2012 mcneil and bienkowski were invited to the london stock exchange to formally open the london markets in order to mark the launch of 20 new etps offered by boost etp . 6 leveraged etfs etps have been part of the investment scene in north america since proshares introduced ultra proshares 7 in 2006 and have since grown rapidly . 8 even though this was preceded by the introduction of the world s first leveraged etfs in sweden in 2005 by xact 9 the european market remained underdeveloped . the etf market in europe is generally seen to be five to ten years behind the american market 10 a theory that appears to be consistent with leveraged etps . due to the offerings of companies like powershares and direxion the us etf market has a range of 3x leveraged and inverse etfs this is not the case in europe . having spotted an opportunity to create niche value boost etp was set up in order to satisfy european demand for 3x leveraged and short etps . 11 in 2014 wisdomtree investments acquired a majority stake 75 % in boost etp . wisdomtree will invest 20 million in boost etp to give it working capital to build out its european business . 12 product structure edit boost etp s swap based model incorporates features from both unfunded and funded swap operating models . when boost etp issues a product to an investor the capital received is transferred to the swap counterparty . however as the products are three times leveraged the counterparty is offering 3 times the exposure whilst only receiving one third of the value of the swap meaning that the swap is both funded and unfunded . traditionally speaking etfs are broken into two categories asset backed physical replication . broadly speaking this is a type of etf that invests its capital directly into the underlying asset it is attempting to replicate . 13 a physical etf attempting to replicate a given equity index will in theory purchase all of the shares in that index aggregate them into a basket and then sell shares of the basket to investors . in cases where there are too many shares in an index to purchase efficiently the etf issuer will use a method called stratified sampling whereby the issuer purchases a sample of the index that is closely correlated to the overall index . 14 synthetic . this method consists of an etf manager entering into a swap contract with an investment bank that agrees to pay the index return in exchange for a small fee and any returns on collateral held in the etf portfolio . 15 as of may 2011 synthetic etfs outnumber physical etfs by a ratio of around 2 1 16 and have grown in popularity due to reduced fees associated with synthetic structures which in turn lends itself to delivering superior tracking error or in layman s terms ; synthetic etfs track their underlying asset more closely . this synthetic replication is done with the use of complex derivative strategies or swaps . types of swaps funded swaps this means that the capital raised by the etp issuer is handed directly over to the swap counterparty . unfunded swaps in this case the capital raised by the etp issuer is not handed over to the swap counterparty the capital is generally given to an independent custodian who keeps the capital in a ring fenced account . key partners edit authorized participants boost etp s partners are some of the largest participants in the exchange traded products market . bnp paribas virtu financial flow traders abn amro and ubs act as authorized participants for its london stock exchange listed range . 17 market makers boost etp has a variety of market makers 18 bnp paribas citigroup flow traders getco imc jane street knight capital merrill lynch morgan stanley nomura peel hunt susquehanna ubs unicredit virtu financial winterflood leveraged exchange traded products exchange traded funds edit leveraged exchange traded products etps are a specific type of etp etf that aim to achieve returns that are more sensitive to market movements than standard etps etfs . in a similar fashion to vanilla exchange traded products investors that take on leveraged etps etfs expose themselves to the performance of an underlying asset . however unlike a standard etp etf a leveraged product will return a multiple of the return of the underlying asset to the investor . common leverage factors are 2x 3x and 5x meaning that the product will return 200 % 300 % or 500 % of the daily performance of the underlying asset . 19 leveraged etfs etps edit leveraged etfs etps are generally split into two categories leveraged etfs etps these etps will result in a direct multiple of the return of an underlying asset . therefore a 3x leveraged etp tracking the ftse 100 will amplify the daily return of the underlying index by a multiple of 3 . if the underlying index returns 1 % the etp will return 3 % if the underlying index returns 1 % the etp will return 3 % . 20 inverse etfs etps conversely a 3x short etp will return three times the inverse of the index it is tracking . if the underlying index returns 1 % the etp will return 3 % if the underlying index returns 1 % the etp will return 3 % . the fact that the value of inverse etps rises during a declining market environment makes these investments very popular in bear markets . 21 rebalancing method edit most leveraged etps employ a method of daily rebalancing in order to deliver the correct multiple of index returns on that day . this can result in beta slippage whereby the movements in the underlying index can affect the overall value of the etp by a disproportionate amount . 22 see also leveraged etfs see also inverse exchange traded fund boost etp products edit equity linked etps boost ftse 100 1x short daily etp lse suk1 boost ftse 100 2x leverage daily etp lse 2ukl boost ftse 100 2x short daily etp lse 2uks boost ftse 100 3x leverage daily etp lse 3ukl boost ftse 100 3x short daily etp lse 3uks boost ftse 250 1x short daily etp lse 1mcs boost ftse 250 2x leverage daily etp lse 2mcl boost euro stoxx 50 3x leverage daily etp lse 3eul boost euro stoxx 50 3x short daily etp lse 3eus boost levdax 3x daily etp lse 3del boost levdax 3x daily etp lse 3lde boost shortdax 3x daily etp lse 3des boost shortdax 3x daily etp lse 3sde boost s & p 500 3x leverage daily etp lse 3usl boost s & p 500 3x short daily etp lse 3uss boost nasdaq 100 3x leverage daily etp lse qqq3 boost nasdaq 100 3x short daily etp lse qqqs commodity linked etps boost natural gas 2x leverage daily etp lse 2ngl boost natural gas 2x short daily etp lse 2ngs boost natural gas 3x leverage daily etp lse 3ngl boost natural gas 3x short daily etp lse 3ngs boost wti oil 3x leverage daily etp lse 3loi boost wti oil 3x leverage daily etp lse 3oil boost wti oil 3x short daily etp lse 3soi boost wti oil 3x short daily etp lse 3ois boost gold 1x short daily etp lse 1gos boost gold 2x leverage daily etp lse 2gol boost gold 2x short daily etp lse 2gos boost gold 3x leverage daily etp lse 3lgo boost gold 3x leverage daily etp lse 3gol boost gold 3x short daily etp lse 3sgo boost gold 3x short daily etp lse 3gos boost silver 2x leverage daily etp lse 2sil boost silver 2x short daily etp lse 2sis boost silver 3x leverage daily etp lse 3lsi boost silver 3x leverage daily etp lse 3sil boost silver 3x short daily etp lse 3ssi boost silver 3x short daily etp lse 3sis boost palladium 1x short daily etp lse 1pas boost palladium 2x leverage daily etp lse 2pal boost copper 3x leverage daily etp lse 3hcl boost copper 3x short daily etp lse 3hcs awards edit in its first year of existence boost etp won the etf express most innovative european etp provider for 2013 . 23 issuers of etfs edit list of exchange traded fund issuers . references edit http www.boostetp.com content about us http www.mondovisione.com media and resources news boost etp launches on london stock exchange issuer debuts with ftse based leve http www.efinancialnews.com story 2013 04 02 mcneil and bienkowski offer etp boost http www.indexuniverse.eu europe news 8648 specialised provider hits european etp market.html http www.indexuniverse.com sections features 15409 boosting the etp market.html http www.londonstockexchange.com about the exchange media relations press releases 2012 boostetplaunchesonlondonstockexchange.htm http www.investopedia.com articles mutualfund 07 leveraged etfs.asp http seekingalpha.com article 850221 the 38 million dollar levered etf share http en.xact.se our etfs leveraged xact bull tab facts http www.ey.com publication vwluassets european etf survey 2013 file european etf survey 2013.pdf http www.etf radar.com blog 2013 03 experttalk hector mcneil hampson rebecca . wisdomtree taps into europe with purchase . etf.com . http www.recognia.com news investor education online brokers can teach clients about etfs vs etns http www.etf.db.com uk en binaer view.asp binaernr 1224 http www.morningstar.co.uk uk etfs etfsolutions.aspx docid 324200 http www.indexuniverse.eu europe opinion and analysis 7862 synthetic etf boom slows.html http www.etfstrategy.co.uk boost etp source sign up additional etf authorised participants aps