Post on 02-May-2022
SHORT & LEVERAGED ETPsGlobal Flows
September 2021
WisdomTree
Short and leveraged exchange-traded products are only intended for investors who understand the risks involved in investing in a product with short and/or leveraged exposure and who intend to invest on a short term basis. Any investment in short and/or leveraged products should be monitored on a daily basis to ensure consistency with your investment strategy. You should understand that investments in short and/or leveraged exchange-traded products held for a period of longer than one day may not provide returns equivalent to the return from the relevant unleveraged
comparison to investments that do not incorporate these strategies. Please refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in short and/or leveraged exchange-traded products. You should consult an independent investment adviser prior to making an investment in short and/or leveraged exchange-traded products in order to determine its suitability to your circumstances.
2
Importance of WisdomTree Short & Leveraged ETPs Report
Money moves fast in the Short & Leveraged (S&L) world and around $106 billion as of 30/09/2021 sits within Short & Leveraged ETPs. The WisdomTree Short & Leveraged ETP report tries to make sense of the money moving in and out of S&L ETPs.
Solely looking at inflows and outflows of long-only ETPs fails to present the true picture of investor sentiment. We believe a better measure of sentiment is to try and understand how bullish or how bearish investors are on a particular market. Investors allocating to 3x leveraged exposures demonstrates a bullish sentiment better than looking at long-only ETP inflows. Similarly, a 3x short exposure would demonstrate a bearish view better than looking at long-only ETP outflows.
By illustrating S&L ETPs flows, the WisdomTree Short & Leveraged ETP report provides a nuanced view of investor sentiment for the past month across a range of exposures which cannot be seen using trading flow data.
About the WisdomTree S&L ETP flows report WisdomTree is a market leading S&L ETP issuer, providing unique data through its monthly S&L ETP flows report. The WisdomTree S&L ETP flows report is compiled through a proprietary global Short & leveraged ETP database which covers and categorises every S&L ETP globally in terms of the underlying investment and leverage factors.
All data provided in this report is sourced from calculations by WisdomTree, which are performed on underlying price, return, AUM, currency and market capitalisation data from Bloomberg®. All data is as of 30th September 2021. All figures are denominated in USD.
You cannot invest directly in an index. Historical performance is not an indication of future performance and any investments may go down in value.
3
Executive Summary Bullish US and Bearish Japanese positions dominated equity flows in September
• Investors added leveraged long positions in US equities while Japanese equities primarily saw outflows from leveraged long positions.
• US equities pulled back in September as concerns around the indebtedness of China’s property sector were joined by Europe’s energy crisis, a stand-off over the US debt ceiling, and rising US Treasury yields.
• Japanese equities, in contrast, posted healthy gains during September, potentially prompting leveraged long investors to take profits – a timely move for tactical investors given the pullback at the start of October.
Bearish flows dominated energy commodities amid rising prices
• Commodity flows were dominated by oil and natural gas. In both commodities, investors closed their leveraged long positions and added short positions, signifying a broadly contrarian sentiment amid a bull market.
• Both Brent and WTI oil benchmarks were up over 9% during September as a combination of supply tightness and rising demand continued to propel energy markets. The decision from the Organisation of the Petroleum Exporting Countries and its partners (OPEC+) at the start of October not to increase the rate of supply additions has further catalysed oil markets.
• Henry Hub natural gas prices were up over 34% in September as supply tightness worldwide has pushed prices to their highest level in over a decade.
4
Taper talks and German elections grapple with market sentiment
• In September, S&L investors continued to increase their positions in short US Government Bonds ETPs (+$166mln in -1x, +$11mln in -2x, +$39mln in -3x). The US yield curve steepened in September with US 10 year government bondyields at higher levels than at the start of the month. Following the September Federal Open Market Committee(FOMC) meeting, Chairman Jerome Powell indicated that tapering of asset purchases “may soon be warranted”. S&Linvestor positioning could indicate an expectation for US government long term bond yields to move higher.
• Investors in S&L ETPs decreased their short positions in German and Italian government bond ETPs. S&L investorsappeared to show less conviction for rising bond yields in Germany in September as the outcome of the German elections took centre stage.
Global Asset Allocation • The total global AUM of Short & Leveraged (S&L) ETPs was $103.8 billion as of 30/09/2021 • 27% of AUM is held in short products with leverage factors ranging between -1x to -3x. 73% of AUM is held in long
products with leverage factors ranging from +2 and above. The leverage factor with the most assets is +3x, with 41% of AUM.
• In terms of S&L asset allocation, equity ETPs are the most popular with 85% of AUM, followed by commodities with 8% and debts with 6%. The remainder is allocated between currency and alternative ETPs.
All data provided in this report is sourced from calculations by WisdomTree, which are performed on underlying price, return, AUM, currency and market capitalisation data from Bloomberg®. All data is as of 30th September 2021. All figures are denominated in USD.
You cannot invest directly in an index. Historical performance is not an indication of future performance and any investments may go down in value.
5
Table of Contents Importance of WisdomTree Short & Leveraged ETPs Report ..................................................................................... 2
Executive Summary .............................................................................................................................................. 3
Global Growth of S&L ETFs/ETPs ............................................................................................................................ 6
Global Asset Allocation .......................................................................................................................................... 7
Short & Leveraged Equities .................................................................................................................................... 9
Global Equities ........................................................................................................................................................................................... 9
European Equities Breakdown ............................................................................................................................................................... 11
Short & Leveraged Government Debt .................................................................................................................... 13
Global Debt .............................................................................................................................................................................................. 13
Short & Leveraged Commodities .......................................................................................................................... 15
Global Commodities ................................................................................................................................................................................ 15
Short & Leveraged Currencies .............................................................................................................................. 17
Global Currencies .................................................................................................................................................................................... 17
Data, Methodology and Terms Used ...................................................................................................................... 19
6
AUM and Number of Products
AUM by Leverage Factor
As of 30th September 2021
AUM by Asset Class
As of 30th September 2021
AUM by Domicile Region
As of 30th September 2021
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 AUM 88 1,576 6,193 27,38138,95741,47746,73343,79957,14358,98967,85370,49284,22774,22677,34786,117103,84 Num. of ETPs 9 29 117 286 385 513 713 820 811 880 983 1028 1122 1051 869 627 593
0
200
400
600
800
1000
1200
0
20,000
40,000
60,000
80,000
100,000
120,000
Num
ber o
f Pro
duct
s
AUM
, USD
Mil
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
3x 638 2,863 4,544 5,151 5,023 6,692 9,915 11,127 11,263 17,199 16,092 20,469 30,098 41,991
2x 82 601 1,615 13,577 12,762 13,120 12,158 13,695 21,536 22,971 27,758 25,267 32,744 30,453 29,983 28,094 32,851
-1x 6 649 1,084 2,796 6,370 6,928 12,928 10,860 12,393 11,603 13,780 15,942 17,292 15,169 11,351 12,190 12,874
-2x 327 3,494 10,081 14,512 13,769 12,866 10,845 12,441 9,777 9,506 11,707 10,873 7,947 9,286 10,314 10,031
-3x 288 2,427 2,909 3,370 3,016 3,530 3,662 4,269 5,310 4,471 4,018 5,154 4,962 5,660
Other 23 207 245 208 195 209 212 223 448 395 273 182 154
0
20,000
40,000
60,000
80,000
100,000
120,000
AUM
, USD
Mill
ions Other
0%-3x5% -2x
10%
-1x12%
2x32%
3x41%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Alternative 81 830 914 945 2,262 2,586 1,697 3,427 1,269 1,471 490 482
Currency 33 270 562 907 1,620 1,200 1,386 1,456 1,200 1,185 1,083 712 541 510 402
Commodity 38 2,111 3,915 4,951 4,921 4,831 3,744 3,985 5,593 6,054 7,070 5,467 7,031 6,743 7,988
Debt - Debt 1,695 5,435 7,943 7,501 7,914 11,547 8,720 8,217 8,308 9,555 6,805 3,365 2,950 6,502
Equity 88 1,576 6,122 23,304 29,022 27,387 31,569 28,660 39,073 42,036 49,565 52,599 62,456 59,915 64,257 75,449 88,491
020,00040,00060,00080,000
100,000120,000
AUM
, USD
Mil
Equity85%
Debt6%
Commodity8%
Currency0%
Alternative1%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Latin America 12 28 34 45 124 59 8 59 38 23 23 27
Middle East & Africa 6 290 21 35 93 90 3,764 3,288 4,310 3,737 3,602 3,491 3,652 2,820
Europe 82 326 1,166 2,918 5,889 6,873 7,511 7,257 7,365 7,265 8,088 8,632 11,149 8,455 7,282 6,898 8,159
Asia-Pacific 43 319 1,583 2,172 4,662 7,085 14,468 17,027 19,841 22,370 19,330 23,341 23,236
North America 961 5,006 24,428 32,908 33,974 33,596 30,767 40,351 40,248 40,945 40,687 48,910 40,501 50,030 55,879 72,442
0
20,000
40,000
60,000
80,000
100,000
120,000
AUM
, USD
Mil
North America
70%
Asia-Pacific
22%
Europe8%
Latin America
0%
Global Growth of S&L ETFs/ETPs
7
Global Asset Allocation
Current Allocations As of 30th September 2021; Figures in USD Mil.
September 2021 Flows Over September 2021; Figures in USD Mil.
AUM
Asset Flows
AUM by Leverage Factor
Asset Flows by Leverage Factor
Notional AUM by Long / Short ETPs The sum of the AUM in each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of assets in a 3x leverage or a 3x short ETP equals $3 of notional AUM
Notional Flows by Long / Short ETPs The net subscriptions for each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of outflows from a 3x leverage ETP equals -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure indicates investors have a net short, or net bearish position; a positive figure indicates a net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs. A negative figure indicates net bearish flows, while a positive figure indicates net bullish flows
88,491
6,502402
7,988482
010,00020,00030,00040,00050,00060,00070,00080,00090,000
100,000
Equity Debt Currency Commodity Alternative
3,060
-337 -12 -135
23
-1,000-500
0500
1,0001,5002,0002,5003,0003,500
Equity Debt Currency Commodity Alternative
Equity Debt Currency Commodity Alternative
Other 20 21
3.0x 40,181 373 30 1,407
2.3x 28
2.0x 26,903 121 55 5,772
-0.5x 389
-1.0x 9,392 3,100 89 227 66
-2.0x 7,090 2,328 104 508
-3.0x 4,925 559 102 73
020,00040,00060,00080,000
100,000
Equity Debt Currency Commodity Alternative
Other 1 0 0
3x 4,005 -14 -1 -18
2x -1,807 -16 0 -314 5
-1x 476 -218 -8 -56 18
-2x 479 -130 -1 230
-3x -94 40 -1 24
-3,000-2,000-1,000
01,0002,0003,0004,0005,0006,000
Equity Debt Currency Commodity Alternative
Long 174,349 1,360 327 15,765 56
Short 38,348 9,536 508 1,463 454
020,00040,00060,00080,000
100,000120,000140,000160,000180,000200,000
Equity Debt Currency Commodity Alternative
Long 8,402 -74 -6 -684 10
Short 1,152 -354 -15 477 18
-2,000-1,000
01,0002,0003,0004,0005,0006,0007,0008,0009,000
136,001
-8,175 -181
14,302
-398-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Equity Debt Currency Commodity Alternative
7,250
280 9
-1,161
-8
-2,000-1,000
01,0002,0003,0004,0005,0006,0007,0008,000
Equity Debt Currency Commodity Alternative
8
Global Asset Allocation - Historical View Net Position and Average Investor Leverage
Cumulative Asset Flows into Short / Long ETPs and Net Position Flows
All E
quiti
es
All B
onds
All C
omm
oditi
es
All C
urre
ncie
s
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Aver
age
inve
stor
Lev
erag
e
Net
Pos
ition
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-120,000
-100,000
-80,000
-60,000
-40,000
-20,000
0
20,000
40,000
Net Position Flow ($m)Asset Flows into Long ETPs ($m)Asset Flows into Short ETP ($m)
-1.40x
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-9,000
-8,000
-7,000
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
0.50x
1.00x
1.50x
2.00x
2.50x
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
-10,000
-5,000
0
5,000
10,000
15,000
20,000
-0.90x
-0.80x
-0.70x
-0.60x
-0.50x
-0.40x
-0.30x
-0.20x
-0.10x
-450
-400
-350
-300
-250
-200
-150
-100
-50
0
-200
-150
-100
-50
0
50
100
150
200
250
300
9
Short & Leveraged Equities Global Equities Current Allocations By Geographic Exposure; As of 30th September 2021; Figures in USD Mil. “Europe” represents the sum total of ETPs exposed to Europe or European countries.
September 2021 Flows By Geographic Exposure; During September 2021; Figures in USD Mil.
AUM
Asset Flows
AUM by Leverage Factor
Asset Flows by Leverage Factor
Notional AUM by Long / Short ETPs The sum of the AUM in each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of assets in a 3x leverage or a 3x short ETP equals $3 of notional AUM
Notional Flows by Long / Short ETPs The net subscriptions for each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of outflows from a 3x leverage ETP equals -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure indicates investors have a net short, or net bearish position; a positive figure indicates a net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs. A negative figure indicates net bearish flows, while a positive figure indicates net bullish flows
63,278
147 191 15 46 1,510 3,409320 33 244 2,886 337 208
6,446 6,0532,906
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
USA
Cana
da
Braz
il
LatA
m B
road
Mex
ico
Aust
ralia
Chin
a
HK
Indi
a
Japa
n
S Ko
rea
Taiw
an
N.America LatAm GlobalEurope EM DM Asia-Pacific
4,129
3 35 0 0 73 60 7 5 15 19
76
-18
-1,158
4
-210
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
USA
Cana
da
Braz
il
LatA
m B
road
Mex
ico
Aust
ralia
Chin
a
HK
Indi
a
Japa
n
S Ko
rea
Taiw
an
N.America LatAm GlobalEurope EM DM Asia-Pacific
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
USA
Cana
da
Braz
il
LatA
m B
road
Mex
ico
Aust
ralia
Chin
a
HK
Indi
a
Japa
n
S Ko
rea
Taiw
an
N.America LatAm GlobalEurope EM DM Asia-Pacific
-3x -2x -1x 2x 3x
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
USA
Cana
da
Braz
il
LatA
m B
road
Mex
ico
Aust
ralia
Chin
a
HK
Indi
a
Japa
n
S Ko
rea
Taiw
an
N. America LatAm GlobalEurope EM DM Asia-Pacific
-3x -2x -1x 2x 3x
144,
821
195
515
45 100
3,83
4
3,00
6
643
30 488 5,58
3
515
454 7,
720
5,05
1
1,29
620,2
51
87 36 0 6 570
3,17
4
158
19 0 487
79 47 4,85
3
5,49
2
2,25
8
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
USA
Cana
da
Braz
il
LatA
m B
road
Mex
ico
Aust
ralia
Chin
a
HK
Indi
a
Japa
n
S Ko
rea
Taiw
an
N.America LatAm GlobalEurope EM DM Asia-Pacific
Long Short 11,814
-2
98 0 0 218
28
-5
3 30 53 151
-33 -3,320
-97 -537
-10
9 4 0 -0
-6
44
-16
4 0 59 1
-11
938 44 58
-6,000-4,000-2,000
02,0004,0006,0008,000
10,00012,00014,000
USA
Cana
da
Braz
il
LatA
m B
road
Mex
ico
Aust
ralia
Chin
a
HK
Indi
a
Japa
n
S Ko
rea
Taiw
an
N.America LatAm GlobalEurope EM DM Asia-Pacific
Long Short
124,571
108 479 45 94 3,264
-168
486 11 488 5,096
436 407 2,867
-440 -962
-20,0000
20,00040,00060,00080,000
100,000120,000140,000
USA
Cana
da
Braz
il
LatA
m B
road
Mex
ico
Aust
ralia
Chin
a
HK
Indi
a
Japa
n
S Ko
rea
Taiw
an
N.America LatAm GlobalEurope EM DM Asia-Pacific
11,824
-10
93 0 0 224
-16
11
-1
30
-6
150
-22
-4,259
-141 -596
-6,000-4,000-2,000
02,0004,0006,0008,000
10,00012,00014,000
USA
Cana
da
Braz
il
LatA
m B
road
Mex
ico
Aust
ralia
Chin
a
HK
Indi
a
Japa
n
S Ko
rea
Taiw
an
N.America LatAm GlobalEurope EM DM Asia-Pacific
10
Global Equities - Historical View Net Position and Average Investor Leverage
Cumulative Asset Flows into Short / Long ETPs and Net Position Flows
US
Equi
ties
All E
urop
e Eq
uitie
s
Japa
n Eq
uitie
s
EM E
quiti
es
Chin
a Eq
uitie
s
0.50x
1.00x
1.50x
2.00x
2.50x
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Aver
age
Inve
stor
Lev
erag
e
Net
Pos
ition
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-50,000
-40,000
-30,000
-20,000
-10,000
0
10,000
20,000
Net Position Flow ($m)
Asset Flows into Long ETPs ($m)
Asset Flows into Short ETP ($m)
-0.80x-0.70x-0.60x-0.50x-0.40x-0.30x-0.20x-0.10x
0.10x0.20x
-3,000
-2,500
-2,000
-1,500
-1,000
-500
0
500
1,000
-2,500
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
0.80x
1.00x
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
-14,000-12,000-10,000
-8,000-6,000-4,000-2,000
02,0004,0006,0008,000
0.50x
1.00x
1.50x
2.00x
2.50x
0100200300400500600700800900
1,000
-300
-250
-200
-150
-100
-50
0
50
0.20x0.40x0.60x0.80x1.00x1.20x1.40x1.60x1.80x2.00x
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
11
European Equities Breakdown Current Allocations By Geographic Exposure; As of 30th September 2021; Figures in USD Mil. “Europe” represents ETPs exposed to Europe as a region.
September 2021 Flows By Geographic Exposure; Over September 2021; Figures in USD Mil.
AUM Showing countries with AUM above $10mm
Asset Flows
AUM by Leverage Factor
Asset Flows by Leverage Factor
Notional AUM by Long / Short ETPs The sum of the AUM in each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of assets in a 3x leverage or a 3x short ETP equals $3 of notional AUM
Notional Flows by Long / Short ETPs The net subscriptions for each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of outflows from a 3x leverage ETP equals -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure indicates investors have a net short, or net bearish position; a positive figure indicates a net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs. A negative figure indicates net bearish flows, while a positive figure indicates net bullish flows
829
588
1,176
423
68127
31
168
0
200
400
600
800
1,000
1,200
1,400
Europe France Germany Italy Russia Spain Switz. UK-14
18
48
-7 -3
9
1
8
-20
-10
0
10
20
30
40
50
60
Europe France Germany Italy Russia Spain Switz. UK
0
200
400
600
800
1,000
1,200
1,400
Europe France Germany Italy Russia Spain Switz. UK
-3x -2x -1x 2x 3x
-30
-20
-10
0
10
20
30
40
50
60
Europe France Germany Italy Russia Spain Switz. UK
-3x -2x -1x 2x 3x
732
388
658
606
204
185
0
235
673
667
1,26
6
328
0
69 62
110
0
200
400
600
800
1,000
1,200
1,400
Europe France Germany Italy Russia Spain Switz. UK
Long Short
-53
45 42
-2 -10
-4
0
11 4
-13
29
-6
0
23
2 5
-60
-40
-20
0
20
40
60
Europe France Germany Italy Russia Spain Switz. UK
Long Short
59
-279
-608
277 204
116
-62
125
-700-600-500-400-300-200-100
0100200300400
Europe France Germany Italy Russia Spain Switz. UK
-57
58
13 3
-10
-27
-2
5
-80
-60
-40
-20
0
20
40
60
80
Europe France Germany Italy Russia Spain Switz. UK
12
Europe Equities - Historical View Net Position and Average Investor Leverage
Cumulative Asset Flows into Short / Long ETPs and Net Position Flows
Broa
d Eu
rope
Equ
ities
UK
Equi
ties
Germ
any
Equi
ties
Ital
y Eq
uitie
s
Fran
ce E
quiti
es
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
-1,200
-1,000
-800
-600
-400
-200
0
200
400
Aver
age
Inve
stor
Lev
erag
e
Net
Pos
ition
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-400
-300
-200
-100
0
100
200
300
Net Position Flow ($m)
Asset Flows into Long ETPs ($m)
Asset Flows into Short ETP ($m)
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
0.80x
1.00x
-150
-100
-50
0
50
100
150
200
-150
-100
-50
0
50
100
150
200
250
-0.90x
-0.80x
-0.70x
-0.60x
-0.50x
-0.40x
-0.30x
-0.20x
-0.10x
-1,400
-1,200
-1,000
-800
-600
-400
-200
0
-1,200
-1,000
-800
-600
-400
-200
0
200
400
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
0.80x
1.00x
-200
-100
0
100
200
300
400
500
-500-400-300-200-100
0100200300400500
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-700
-600
-500
-400
-300
-200
-100
0
-800
-600
-400
-200
0
200
400
600
800
13
Short & Leveraged Government Debt Global Debt Current Allocations By Geographic Exposure; As of 30th September 2021; Figures in USD Mil.
September 2021 Flows By Geographic Exposure; Over September 2021; Figures in USD Mil.
AUM Showing countries with AUM above $10mm
Asset Flows
AUM by Leverage Factor
Asset Flows by Leverage Factor
Notional AUM by Long / Short ETPs The sum of the AUM in each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of assets in a 3x leverage or a 3x short ETP equals $3 of notional AUM
Notional Flows by Long / Short ETPs The net subscriptions for each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of outflows from a 3x leverage ETP equals -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure indicates investors have a net short, or net bearish position; a positive figure indicates a net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs. A negative figure indicates net bearish flows, while a positive figure indicates net bullish flows
4,622
72
1,140
22015
184
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
183
5
-146
-32
1
-374
-500
-400
-300
-200
-100
0
100
200
300
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
-3x -2x -1x 2x 3x Other
-500
-400
-300
-200
-100
0
100
200
300
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
-3x -2x -1x 2x 3x Other
1,29
5
0 3 3 1 0
6,99
2
72
1,56
6
460
43 184
01,0002,0003,0004,0005,0006,0007,0008,000
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
Long Short
-77
0 0 0 0 0
303
5
-248
-65
2
-374 -500-400-300-200-100
0100200300400
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
Long Short
-5,696
-72
-1,563
-457 -42 -184
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
-380
-5
248
65
-2
374
-500-400-300-200-100
0100200300400500
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
14
Global Debt - Historical View Net Position and Average Investor Leverage
Cumulative Asset Flows into Short / Long ETPs and Net Position Flows
US
Gvt B
onds
Euro
pe G
vt B
onds
Germ
any
Gvt B
onds
Ital
y Gv
t Bon
ds
-1.40x
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
Aver
age
Inve
stor
Lev
erag
e
Net
Pos
ition
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
Net Position Flow ($m)Asset Flows into Long ETPs ($m)Asset Flows into Short ETP ($m)
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-120
-100
-80
-60
-40
-20
0
-60
-40
-20
0
20
40
60
-1.60x
-1.55x
-1.50x
-1.45x
-1.40x
-1.35x
-1.30x
-1.25x
-1.20x
-2,000
-1,800
-1,600
-1,400
-1,200
-1,000
-800
-600
-400
-200
0
-1,000
-500
0
500
1,000
1,500
-2.50x
-2.00x
-1.50x
-1.00x
-0.50x
-700
-600
-500
-400
-300
-200
-100
0
-250
-200
-150
-100
-50
0
50
100
150
15
Short & Leveraged Commodities Global Commodities Current Allocations By commodity exposure; As of 30th September 2021; Figures in USD Mil; Showing the top 10 AUM commodity exposures
September 2021 Flows By commodity exposure; Over September 2021; Figures in USD Mil; Showing the Flows for top 10 AUM commodity exposures
AUM Showing commodity exposures with the top 10 AUMs
Asset Flows
AUM by Leverage Factor
Asset Flows by Leverage Factor
Notional AUM by Long / Short ETPs The sum of the AUM in each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of assets in a 3x leverage or a 3x short ETP equals $3 of notional AUM
Notional Flows by Long / Short ETPs The net subscriptions for each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of outflows from a 3x leverage ETP equals -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure indicates investors have a net short, or net bearish position; a positive figure indicates a net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs. A negative figure indicates net bearish flows, while a positive figure indicates net bullish flows
19
838 757
3,704
95
687
1,687
19 48 26
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Zinc Silver Oil Brent Oil Nickel NaturalGas
Gold Corn Copper Coffee
0
-1 -6
-381
-1
117
-50
1
-2 -2
-500
-400
-300
-200
-100
0
100
200
Zinc Silver Oil Brent Oil Nickel NaturalGas
Gold Corn Copper Coffee
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Zinc Silver Oil Brent Oil Nickel NaturalGas
Gold Corn Copper Coffee
-3x -2x -1x 2x 3x Other
-500
-400
-300
-200
-100
0
100
200
300
Zinc Silver Oil Brent Oil Nickel NaturalGas
Gold Corn Copper Coffee
-3x -2x -1x 2x 3x Other
29
1,576 1,496
6,901
188
962
4,306
10 79 65 5 170 29476
12527
146 14 30 00
1,0002,0003,0004,0005,0006,0007,0008,000
Zinc Silver OilBrent
Oil Nickel NaturalGas
Gold Corn Copper Coffee
Long Short
0
-10 -15
-843
-2
-169
7 1
-7 -6
0 2 4 86
0
344
-51
0 3 0
-1,000-800-600-400-200
0200400600
Zinc Silver OilBrent
Oil Nickel NaturalGas
Gold Corn Copper Coffee
Long Short
24
1,406 1,466
6,425
176 435
4,160
-5
49 65
-1,0000
1,0002,0003,0004,0005,0006,0007,000
Zinc Silver OilBrent
Oil Nickel NaturalGas
Gold Corn Copper Coffee
0
-13 -20
-929
-2
-514
57 1
-10 -6
-1,000
-800
-600
-400
-200
0
200
Zinc Silver OilBrent
Oil Nickel NaturalGas
Gold Corn Copper Coffee
16
Global Commodities - Historical View Net Position and Average Investor Leverage
Cumulative Asset Flows into Short / Long ETPs and Net Position Flows
Gold
Silv
er
Copp
er
Oil
Nat
ural
Gas
1.90x
2.00x
2.10x
2.20x
2.30x
2.40x
2.50x
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Aver
age
Inve
stor
Lev
erag
e
Net
Pos
ition
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-200
0
200
400
600
800
1,000
1,200
1,400
Net Position Flow ($m)
Asset Flows into Long ETPs ($m)
Asset Flows into Short ETP ($m)
0.50x
1.00x
1.50x
2.00x
2.50x
0
500
1,000
1,500
2,000
2,500
3,000
-300
-200
-100
0
100
200
300
400
500
600
-0.40x-0.20x
0.20x0.40x0.60x0.80x1.00x1.20x1.40x1.60x
-100
102030405060708090
-50
-40
-30
-20
-10
0
10
20
0.20x0.40x0.60x0.80x1.00x1.20x1.40x1.60x1.80x2.00x
01,0002,0003,0004,0005,0006,0007,0008,0009,000
-15,000
-10,000
-5,000
0
5,000
10,000
15,000
0.50x
1.00x
1.50x
2.00x
2.50x
0
500
1,000
1,500
2,000
2,500
3,000
3,500
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
17
Short & Leveraged Currencies Global Currencies Current Allocations By currency exposure; As of 30th September 2021; Figures in USD Mil; Showing the top 10 AUM currency exposures
September 2021 Flows By currency exposure; Over September 2021; Figures in USD Mil; Showing the Flows for top 10 AUM currency exposures
AUM Showing currency exposures with the top 10 AUMs
Asset Flows
AUM by Leverage Factor Asset Flows by Leverage Factor
Notional AUM by Long / Short ETPs The sum of the AUM in each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of assets in a 3x leverage or a 3x short ETP equals $3 of notional AUM
Notional Flows by Long / Short ETPs The net subscriptions for each ETP multiplied by the absolute value of its leverage factor. E.g., $1 of outflows from a 3x leverage ETP equals -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure indicates investors have a net short, or net bearish position; a positive figure indicates a net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs. A negative figure indicates net bearish flows, while a positive figure indicates net bullish flows
86
34
9
181
7 7 2
70
5
0
50
100
150
200
-0
1 0
-6
-1
0
-0
-8
0
-9-8-7-6-5-4-3-2-1012
0
50
100
150
200
250
-3x -2x -1x 2x 3x Other
-9-8-7-6-5-4-3-2-1012
-3x -2x -1x 2x 3x Other
30
-0
30
1,959
1 9 8 0 0 127 53 14
211 25 25 3 70 10
-500
0
500
1,000
1,500
2,000
2,500
Long Short
1 1
-0
-6
0
-0 -0
0 0
-1 -0
0
-7
-2
1 0
-8
0
-10
-8
-6
-4
-2
0
2
Long Short
-157 -53
16
1,748
-24 -16
5
-70 -10
-500
0
500
1,000
1,500
2,000
0 1
-1 -0
2
-1 -1
8
-0 -2
0
2
4
6
8
10
18
Global Currencies - Historical View Net Position and Average Investor Leverage Cumulative Asset Flows into Short / Long ETPs
and Net Position Flows
EUR-
USD
EU
R-GB
P JP
Y-US
D GB
P-U
SD
-0.20x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
-50
0
50
100
150
200
250
300
Aver
age
Inve
stor
Lev
erag
e
Net
Pos
ition
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-150
-100
-50
0
50
100
150
200
250
Net Position Flow ($m)
Asset Flows into Long ETPs ($m)
Asset Flows into Short ETP ($m)
-2.50x
-2.00x
-1.50x
-1.00x
-0.50x
-25
-20
-15
-10
-5
0
-10
-5
0
5
10
15
-1.80x
-1.60x
-1.40x
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
-30
-20
-10
0
10
20
30
40
50
0.50x
1.00x
1.50x
2.00x
2.50x
3.00x
3.50x
0
10
20
30
40
50
60
70
80
90
-30
-20
-10
0
10
20
30
40
50
60
19
Data, Methodology and Terms Used
This report provides statistics of AUM, flows and related measures for short & leveraged Exchange Traded Products (ETPs).
Following are some definitions for the terms used in the analyses:
ETP (Exchange Trade Product) is used as a generic, interchangeable term to refer to Exchange Traded Funds (ETFs), Exchange Traded Products (ETPs), Exchange Traded Notes (ETNs) and Exchange Traded Commodities (ETCs).
Short & Leveraged ETPs (S&L ETPs) are ETPs whose leverage factor with respect to the underlying asset class being tracked is different to 1.
Short ETPs are ETPs whose leverage factor with respect to the underlying asset class being tracked is negative, typically −1𝑥𝑥, −2𝑥𝑥 or lower.
Leveraged ETPs are ETPs whose leverage factor with respect to the underlying asset class being tracked is positive and higher than +1𝑥𝑥.
AUM or Assets represents the assets under management in an ETP. For some ETPs for which the AUM is not available, their market capitalisations have been used where possible.
Asset Flow or Net Subscriptions is a measure representing the value of net subscriptions over the period, thus removing the effect of changes due to price.
Notional AUM is the sum of the AUM in each ETP multiplied by the absolute value of its leverage factor, e.g. $1 in a 3x long ETP or $1 in a -3x short ETP is $3 of Notional AUM in both cases.
Notional Flow is the net subscriptions for each ETP multiplied by the absolute value of the leverage factor. Alternatively, it is the change in the Notional AUM that is not due to price changes.
Net Position is the sum of the AUM in each ETP multiplied by its leverage factor (which may be either negative or positive). A negative figure indicates investors are net short.
Net Position Flow or Repositioning is Notional Flow in long ETPs minus the Notional Flow in short ETPs. Alternatively, it is the change in the Net Position that is not due to price changes and indicates whether investors are bullish (net long) or bearish (net short) after taking leverage factor into account.
Average Investor Leverage is calculated as the average leverage factor across all ETPs of a certain index / exposure and is weighted by the total AUM and leverage factor for each ETP. Average Investor Leverage is used as a proxy for overall investor sentiment with regard to an asset. It may be biased due to leverage factors on offer for each index / exposure, and thus the change in Average Investor Leverage is the most relevant observation rather than the actual number.
All data provided in this report is sourced from calculations by WisdomTree, which are performed on underlying price, return, AUM, currency and market capitalisation data from Bloomberg®. All data is as of 30th September 2021. All figures are denominated in USD.
You cannot invest directly in an index. Historical performance is not an indication of future performance and any investments may go down in value.
Important Information
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