Gilts ETP to give triple exposure

Exchange-traded product (ETP) specialist Boost has launched a three times short fixed income ETP to track the returns from UK 10-year Gilts but with three times any rise or fall in the underlying asset class.

The new ETP is designed to meet a large increase demand for short exposure to fixed income when interest rates start to rise. Boost said that investors are bearish on UK debt, with 98% of the global assets under management for fixed income ETPs in short positions.

Hector McNeil, co-CEO of Boost, commented: “We believe that 3x short fixed income ETPs are exciting additions to the UK ETP market, and introduce investment products which investors currently demand but have not been available until now. Given the persistence of low interest rates which cannot fall much further and which the market expects to increase in the near term, Boost’s 3x short ETPs should now give investors a valuable range of new tools which could enhance their investment returns or hedge against rising rates.”