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Leveraged European ETFs top September performance tables
by Robert St George on Oct 08, 2013 at 10:43
European equity funds employing three times leverage were the best-performing exchange-traded products (ETPs) in September, as global allocations to such vehicles have swelled through the year.
September’s top London-listed ETP was the Boost Euro STOXX 50 3x Leverage Daily ETP , with a 17.7% return in the month according to data from Delta One Solutions, followed by the Germany-tracking Boost LevDax 3x Daily ETP on 16.3%.
World markets rallied in the wake of the Federal Reserve’s decision to delay its tapering of monetary stimulus last month, but importantly for UK investors gains in European equities were less affected by currency movements.
The Euro STOXX 50, DAX 30 and Russell 1000 rose by 6.3%, 6% and 6.2% respectively in local currencies in September, but the devaluation of the US dollar provoked by the prolongation of quantitative easing left US equities in negative territory for the month in sterling terms.
In the eight months to the end of August, the global market for short and leveraged ETPs has increased by 15% to almost £32 billion.
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