US-based ETP sponsor WisdomTree has expanded its range of tactical ETPs with the first leveraged European defence ETP.
The WisdomTree Stoxx Europe Aerospace & Defence 3x Daily Leveraged ETP (3EDF) listed today on the London Stock Exchange, Börse Xetra and Borsa Italiana with a total expense ratio (TER) of 0.80%.
The new short & leveraged (S&L) ETP provides 3x daily leveraged exposure to the Stoxx Europe Total Market Aerospace & Defence Net Total Return Index.
The launch comes as Europe is rapidly increasing its defence spending, which, in the face of geopolitical uncertainty, is forcing greater military self-reliance.
The launch follows the launch of the WisdomTree Europe Defence Ucits ETF last month, which is designed to provide pure-play exposure to European companies involved in the defence industry, including manufacturers of civil defence equipment, parts or products, defence electronics and space defence equipment.
Pierre Debru, Head of Research, Europe, WisdomTree, said: “Short-and-leveraged ETPs allow investors to express high conviction market views, which, when used correctly, can help increase short-term returns or hedge the overall portfolio.
“We have launched this exposure to offer investors a new efficient tool to trade European defence equities tactically.”
