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

Communications issued in the European Economic Area (“EEA”): This document has been issued and approved by Wisdom-Tree Ireland Limited, which is authorised and regulated by the Central Bank of Ireland.

Communications issued in jurisdictions outside of the EEA: This document has been issued and approved by WisdomTree UK Limited, which is authorised and regulated by the United Kingdom Financial Conduct Authority.

Interest Policy and Inventory are available on request.

For professional clients only. The information contained in this document is for your general information only and is

This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a

This document may contain independent market commentary prepared by WisdomTree based on publicly available informa-tion. Although WisdomTree endeavours to ensure the accuracy of the content in this document, WisdomTree does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this document make no warranties or representation of any kind relating to such data. Where WisdomTree has expressed its own opinions related to

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materially from those anticipated in such statements. WisdomTree strongly recommends that you do not place undue reliance on these forward-looking statements.

Any historical performance included in this document may be based on back testing. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Howev-er, back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back test-ed data does not represent actual performance and should not be interpreted as an indication of actual or future performance.

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