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SHORT & LEVERAGED ETPsGlobal Flows
Octo
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 $85 billion as of 31/10/2020 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 31 October 2020. 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
S&L investors took bearish positions in USA equities in October
• Investors in S&L ETPs closed their 3x leveraged long positions in USA equities highlighting a bearish sentiment
towards this market segment last month.
• US equities had a challenging month in October. The S&P 500 Index was down over 2.7% while the NASDAQ
100 Index was down 3.2% during the month. US election uncertainty and the associated delay in the next fiscal
stimulus along with rising coronavirus infections in a second wave around the world weighed on risk
sentiment.
S&L Investors closed out their long positions in gold, silver, and natural gas
• S&L investors closed their 3x leveraged long positions in gold and silver in October. The two precious metals
remained under pressure last month and prices generally moved sideways as broader market volatility ahead of US
elections kept prices across risk and defensive assets in check.
• S&L investors also closed 2x and 3x leveraged natural gas positions possibly to lock in profits. Natural gas bucked the
trend among energy commodities last month and experienced a strong price rally as hurricanes in the Gulf of Mexico
caused production facilities to shut. Further support came from expectations of higher residential heating demand in
the US between October and March.
4
Uncertainty around the US presidential election results and the ongoing health crisis drive S&L investor behaviour
• In October, S&L investors increased slightly their positions in both long and short US government bond ETPs
(+$14mln and +$38mln respectively). The sentiment seems to be highly geared towards uncertainty about the results
of the US presidential election and the consequent policies that will impact future economic growth. As an
agreement on more fiscal stimulus ahead of the US presidential election became less likely, some investors took the
view that US 10 year Treasury yields could fall meanwhile a greater tilt of investors started to position themselves for
the possibility of higher growth and inflation.
• Investors in S&L ETPs also increased their positioning in 2x short Italy Government Bond ETPs by $25mln. As the
number of Covid-19 cases across Europe steadily rose in October, some investors positioned themselves for a
possibility of rising Italian government bond yields in fear that a similar spread widening relative to German
government bonds could occur as was the case during the height of the health crisis earlier this year.
• Investors in S&L ETPs increased their positions in 1x short South Korea government bond ETPs by $290mln and
represented the largest conviction from S&L investors within our data set. In late September, South Korea’s
parliament approved the fourth supplementary budget to aid the local economy amid tight social distancing
restrictions in place and provided a signal to the market about the government’s commitment to support the
economy amid the health crisis.
Global Asset Allocation
• The total global AUM of Short & Leveraged (S&L) ETPs was $84.5billion as of 31/10/2020
• 43% of AUM is held in short products with leverage factors ranging between -1x to -3x. 57% of AUM is held in long
products with leverage factors ranging from +2 and above. The leverage factor with the most assets is +2x, with 29%
of AUM.
• In terms of S&L asset allocation, equity ETPs are the most popular with 87% of AUM, followed by commodities with
8% and debts with 4%. 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 31 October 2020. 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 31st October 2020
AUM by Asset Class As of 31st October 2020
AUM by Domicile Region As of 31st October 2020
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
AUM 88 1,576 6,193 27,381 38,957 41,477 46,733 43,799 57,143 58,989 67,853 70,492 84,227 74,226 77,347 84,512
Num. of ETPs 9 29 117 286 385 513 713 820 811 880 983 1028 1122 1051 869 670
0
200
400
600
800
1000
1200
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Nu
mb
er
of P
rod
uc
ts
AU
M, U
SD
Mil
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
3x 638 2,863 4,544 5,151 5,023 6,692 9,915 11,127 11,263 17,199 16,092 20,469 23,146
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 24,016
-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 17,357
-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 11,805
-3x 288 2,427 2,909 3,370 3,016 3,530 3,662 4,269 5,310 4,471 4,018 5,154 6,091
Other 23 207 245 208 195 209 212 223 448 395 273 191
0
10,000
20,000
30,000
40,00050,000
60,000
70,000
80,000
90,000
AU
M, U
SD M
illio
ns
Other0%
-3x8%
-2x14%
-1x21%
2x29%
3x28%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Alternative 81 830 914 945 2,262 2,586 1,697 3,427 1,269 1,471 473
Currency 33 270 562 907 1,620 1,200 1,386 1,456 1,200 1,185 1,083 712 541 491
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 6,646
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 3,216
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 71,984
010,00020,00030,00040,00050,00060,00070,00080,00090,000
AU
M, U
SD
Mil
Equity
87%
Debt
4%
Commodity
8%
Currency
1%
Altern
ative
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Latin America 12 28 34 45 124 59 8 59 38 23 19
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 7,969
Asia-Pacific 43 319 1,583 2,172 4,662 7,085 14,468 17,027 19,841 22,370 19,330 25,904
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 48,919
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
AU
M, U
SD
Mil
North
America
59%
Asia-
Pacific
31%
Europe
10%
Latin
America
0%
Global Growth of S&L ETFs/ETPs
7
Global Asset Allocation
Current Allocations As of 31st October 2020; Figures in USD Mil.
AUM
October 2020 Flows Over October 2020; Figures in USD Mil.
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
71,984
3,216 6266,646
2,063
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Equity Debt Currency Commodity Alternative
-1,778
523
-2
41 157
-2,000
-1,500
-1,000
-500
0
500
1,000
Equity Debt Currency Commodity Alternative
Equity Debt Currency Commodity Alternative
Other 12 179
3x 21,272 309 35 1,530
2x 19,433 130 62 4,392
-1x 15,191 1,586 108 338 134
-2x 10,302 1,029 139 334
-3x 5,786 150 102 52
010,00020,00030,00040,00050,00060,00070,00080,000
Equity Debt Currency Commodity Alternative
Other 0 0 0
3x -1,907 8 5 3
2x -668 10 0 69 12
-1x 697 473 -7 -36 -59
-2x -5 29 -1 -2
-3x 105 3 0 7
-3,000-2,500-2,000-1,500-1,000
-5000
5001,000
Equity Debt Currency Commodity Alternative
Long 102,680 1,187 394 13,374 92
Short 53,157 4,156 637 1,163 427
0
20,000
40,000
60,000
80,000
100,000
120,000
Equity Debt Currency Commodity Alternative
Long -7,057 43 26 147 24
Short 1,001 541 5 -19 -59
-8,000
-7,000
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
49,523
-2,969 -243
12,211
-336-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
Equity Debt Currency Commodity Alternative
-8,057
-498
21 165 83
-9,000
-8,000
-7,000
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
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
Eq
uit
ies
All
Bo
nd
s A
ll C
om
mo
dit
ies
All
Cu
rre
nci
es
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Ave
rage
inve
sto
r Le
vera
ge
Net
Po
siti
on
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-160,000
-140,000
-120,000
-100,000
-80,000
-60,000
-40,000
-20,000
0
20,000
40,000
Net Position Flow ($m)
Asset Flows into Long ETPs ($m)
Asset Flows into Short ETP ($m)
-1.60x
-1.40x
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-12,000
-10,000
-8,000
-6,000
-4,000
-2,000
0
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
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
-5,000
0
5,000
10,000
15,000
20,000
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-900
-800
-700
-600
-500
-400
-300
-200
-100
0
-400
-200
0
200
400
600
800
1,000
9
Short & Leveraged Equities Global Equities Current Allocations By Geographic Exposure; As of 31st October 2020; Figures in USD Mil.
“Europe” represents the sum total of ETPs exposed to Europe or European countries.
AUM
October 2020 Flows By Geographic Exposure; During October 2020; Figures in USD Mil.
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
41,601
138 190 20 301,988
4,232
305 53 1422,287
315 191
7,623 7,2734,857
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
US
A
Can
ad
a
Bra
zil
LatA
m B
roa
d
Mex
ico
Au
stra
lia
Ch
ina
HK
Ind
ia
Jap
an
S K
ore
a
Ta
iwan
N.America LatAm GlobalEurope EM DM Asia-Pacific
-1,704
1
-52
184
-11
4 1
-201 -155 -46
-275 -69
512
-2,000
-1,500
-1,000
-500
0
500
1,000
US
A
Can
ad
a
Au
stra
lia
Ch
ina
HK
Ind
ia
Jap
an
S K
ore
a
Ta
iwan
N.America Global Europe EM DM Asia-Pacific
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
US
A
Can
ad
a
Bra
zil
LatA
m B
roa
d
Mex
ico
Au
stra
lia
Ch
ina
HK
Ind
ia
Jap
an
S K
ore
a
Ta
iwan
N.America LatAm GlobalEurope EM DM Asia-Pacific
-3x -2x -1x 2x 3x
-2,500
-2,000
-1,500
-1,000
-500
0
500
1,000
US
A
Can
ad
a
Bra
zil
LatA
m B
roa
d
Mex
ico
Au
stra
lia
Ch
ina
HK
Ind
ia
Jap
an
S K
ore
a
Ta
iwan
N. America LatAm GlobalEurope EM DM Asia-Pacific
-3x -2x -1x 2x 3x
75,0
97
109
483
61 54
5,19
7
2,34
1
541
47 284 4,
286
444
339 6,
548
6,25
7
558
26,3
17
145
56 0 8 613 4,
631
199
38 0 391
93 120
8,06
7
6,54
0
4,57
9
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
US
A
Can
ad
a
Bra
zil
LatA
m B
roa
d
Mex
ico
Au
stra
lia
Ch
ina
HK
Ind
ia
Jap
an
S K
ore
a
Tai
wan
N.America LatAm GlobalEurope EM DM Asia-Pacific
Long Short
-5,714
3
-2
6 0
-19
72
-28
0 2
-608 -304
-38 -495
45 23 523
-2 -4
0 0
-142
140 9 4 0 87
-3 -63
-68 -54
500
-7,000
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
US
A
Can
ad
a
Bra
zil
LatA
m B
road
Mex
ico
Au
stra
lia
Ch
ina
HK
Ind
ia
Jap
an
S K
ore
a
Ta
iwan
N.America LatAm GlobalEurope EM DM Asia-Pacific
Long Short
48,780
-36
426 61 46
4,583
-2,290
342 9 284
3,895
351 219
-1,519 -283 -4,021 -10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
US
A
Can
ad
a
Bra
zil
LatA
m B
roa
d
Mex
ico
Au
stra
lia
Ch
ina
HK
Ind
ia
Jap
an
S K
ore
a
Ta
iwan
N.America LatAm GlobalEurope EM DM Asia-Pacific
-6,238
5 2 6 0 123
-69 -36 -4
2
-695 -301
26
-426
99
-477
-7,000
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
US
A
Can
ad
a
Bra
zil
LatA
m B
road
Mex
ico
Au
stra
lia
Ch
ina
HK
Ind
ia
Jap
an
S K
ore
a
Tai
wan
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
Eq
uit
ies
All
Eu
rop
e E
qu
itie
s J
ap
an
Eq
uit
ies
EM
Eq
uit
ies
Ch
ina
Eq
uit
ies
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Ave
rage
Inve
sto
r Le
vera
ge
Net
Po
siti
on
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-60,000
-50,000
-40,000
-30,000
-20,000
-10,000
0
10,000
20,000
30,000
Net Position Flow ($m)
Asset Flows into Long ETPs ($m)
Asset Flows into Short ETP ($m)
-0.80x
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
-3,000
-2,500
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
-20,000
-15,000
-10,000
-5,000
0
5,000
10,000
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
0
100
200
300
400
500
600
700
-300
-200
-100
0
100
200
300
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
2.00x
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
-8,000
-7,000
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
11
European Equities Breakdown Current Allocations By Geographic Exposure; As of 31st October 2020; Figures in USD Mil.
“Europe” represents ETPs exposed to Europe as a region.
AUM Showing countries with AUM above $10mm
October 2020 Flows By Geographic Exposure; Over October 2020; Figures in USD Mil.
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 -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure
indicates investors have a net short, or net bearish position; a positive figure indicates a
net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs. A negative figure
indicates net bearish flows, while a positive figure indicates net bullish flows
1,165
775
1,473
439
346
101 64
168
0
200
400
600
800
1,000
1,200
1,400
1,600
Europe France Germany Italy Portugal Russia Spain Switz. UK
158
42
-7
6
-0 -1 -2 -5 -6 -20
0
20
40
60
80
100
120
140
160
180
Europe France Germany Italy Portugal Russia Spain Switz. UK
0
200
400
600
800
1,000
1,200
1,400
1,600
Europe France Germany Italy Portugal Russia Spain Switz. UK
-3x -2x -1x 2x 3x
-50
0
50
100
150
200
Europe France Germany Italy Portugal Russia Spain Switz. UK
-3x -2x -1x 2x 3x
436 48
5 558
442
6
138
146
0
129
1,21
1
872
1,75
0
440
0 0
56
127 17
6
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Europe France Germany Italy Portugal Russia Spain Switz. UK
Long Short
-2
44
21
-6 -0
-4
3 0
16
150
36
-14
6 0 0
-8 -11 -18
-40
-20
0
20
40
60
80
100
120
140
160
Europe France Germany Italy Portugal Russia Spain Switz. UK
Long Short
-774
-387
-1,192
2 6
138 90
-127 -47
-1,400
-1,200
-1,000
-800
-600
-400
-200
0
200
400
Europe France Germany Italy Portugal Russia Spain Switz. UK
-152
9
35
-12 -0 -4
11 11
33
-200
-150
-100
-50
0
50
Europe France Germany Italy Portugal Russia Spain Switz. UK
12
Europe Equities - Historical View
Net Position and Average Investor Leverage Cumulative Asset Flows into Short / Long ETPs
and Net Position Flows
Bro
ad
Eu
rop
e E
qu
itie
s U
K E
qu
itie
s G
erm
an
y E
qu
itie
s It
aly
Eq
uit
ies
Fra
nce
Eq
uit
ies
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
0.80x
-1,500
-1,000
-500
0
500
1,000
1,500
Ave
rage
Inve
sto
r Le
vera
ge
Net
Po
siti
on
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-2,500
-2,000
-1,500
-1,000
-500
0
500
1,000
Net Position Flow ($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
0.20x
-180
-160
-140
-120
-100
-80
-60
-40
-20
0
20
-100
-50
0
50
100
150
-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
-1,500
-1,000
-500
0
500
1,000
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
0.80x
-200
-150
-100
-50
0
50
100
150
200
250
300
-800-700-600-500-400-300-200-100
0100200300
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
0.20x
0.40x
0.60x
-700
-600
-500
-400
-300
-200
-100
0
100
200
300
-1,400
-1,200
-1,000
-800
-600
-400
-200
0
200
400
600
13
Short & Leveraged Government Debt Global Debt Current Allocations By Geographic Exposure; As of 31st October 2020; Figures in USD Mil.
AUM Showing countries with AUM above $10mm
October 2020 Flows By Geographic Exposure; Over October 2020; Figures in USD Mil.
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 -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure
indicates investors have a net short, or net bearish position; a positive figure indicates a
net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs. A negative figure
indicates net bearish flows, while a positive figure indicates net bullish flows
1,543
59
702
185
9
399
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
52
-5
2
33
1
290
-50
0
50
100
150
200
250
300
350
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
-3x -2x -1x 2x 3x Other
-50
0
50
100
150
200
250
300
350
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
-3x -2x -1x 2x 3x Other
1,11
9
0 32 25 1 0
1,94
6
59
1,05
3
359
25
399
0
500
1,000
1,500
2,000
2,500
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
Long Short
37 0
-0
7
-0
0
51
-5 -2
56
3
290
-50
0
50
100
150
200
250
300
350
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
Long Short
-827
-59
-1,021
-335
-24
-399
-1,200
-1,000
-800
-600
-400
-200
0
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
-14
5 2
-49
-3
-290 -350
-300
-250
-200
-150
-100
-50
0
50
USA Europe Germany Italy UK S Korea
North America Europe Asia-Pacific
14
Global Debt - Historical View
Net Position and Average Investor Leverage Cumulative Asset Flows into Short / Long ETPs
and Net Position Flows
US
Gv
t B
on
ds
Eu
rop
e G
vt
Bo
nd
s G
erm
an
y G
vt
Bo
nd
s It
aly
Gv
t B
on
ds
-1.80x
-1.60x
-1.40x
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
Ave
rage
Inve
sto
r Le
vera
ge
Net
Po
siti
on
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
Net Position Flow ($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
-500
-450
-400
-350
-300
-250
-200
-150
-100
-50
0
-400
-300
-200
-100
0
100
200
300
400
-1.60x
-1.55x
-1.50x
-1.45x
-1.40x
-1.35x
-1.30x
-1.25x
-1.20x
-3,500
-3,000
-2,500
-2,000
-1,500
-1,000
-500
0
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
-2.50x
-2.00x
-1.50x
-1.00x
-0.50x
-900
-800
-700
-600
-500
-400
-300
-200
-100
0
-300
-200
-100
0
100
200
300
400
15
Short & Leveraged Commodities Global Commodities Current Allocations By commodity exposure; As of 31st October 2020; Figures in USD Mil;
Showing the top 10 AUM commodity exposures
AUM Showing commodity exposures with the top 10 AUMs
October 2020 Flows By commodity exposure; Over October 2020; Figures in USD Mil;
Showing the Flows for top 10 AUM commodity exposures
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 -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure
indicates investors have a net short, or net bearish position; a positive figure indicates a
net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs.
A negative figure indicates net bearish flows, while a positive figure indicates net bullish
flows
20
957
199
2,647
41
468
2,134
29 29 30
0
500
1,000
1,500
2,000
2,500
3,0000
-33
10
-24
-2
-42
-49
-2
0
11
-60
-50
-40
-30
-20
-10
0
10
20
0
500
1,000
1,500
2,000
2,500
3,000
-3x -2x -1x 2x 3x Other
-80
-60
-40
-20
0
20
40
-3x -2x -1x 2x 3x Other
0
1,809
333
4,854
79
695
5,360
9 24 79 20 156 51371
8276 186 25 23 0
0
1,000
2,000
3,000
4,000
5,000
6,000
Long Short
0
-115
12 40
-7
-174
-138
-3 -1
29
0 5 6
-53
2
56
-16
0 2 0
-200
-150
-100
-50
0
50
100
Long Short
-20
1,653
281
4,483
71 420
5,174
-16
1 79
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
0
-121
6
93
-9
-229
-122
-3 -2
29
-250
-200
-150
-100
-50
0
50
100
150
16
Global Commodities - Historical View
Net Position and Average Investor Leverage Cumulative Asset Flows into Short / Long ETPs
and Net Position Flows
Go
ld
Sil
ve
r C
op
pe
r O
il
Na
tura
l Ga
s
0.50x
1.00x
1.50x
2.00x
2.50x
3.00x
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Ave
rage
Inve
sto
r Le
vera
ge
Net
Po
siti
on
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Net Position Flow ($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
-900
-800
-700
-600
-500
-400
-300
-200
-100
0
100
200
-0.20x
-0.10x
0.10x
0.20x
0.30x
0.40x
0.50x
-5
0
5
10
15
20
-20
-15
-10
-5
0
5
10
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
2.00x
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
-8,000
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
-0.50x
0.50x
1.00x
1.50x
2.00x
2.50x
-500
0
500
1,000
1,500
2,000
2,500
3,000
3,500
-2,000
0
2,000
4,000
6,000
8,000
10,000
17
Short & Leveraged Currencies Global Currencies Current Allocations By currency exposure; As of 31st October 2020; Figures in USD Mil;
Showing the top 10 AUM currency exposures
AUM Showing currency exposures with the top 10 AUMs
October 2020 Flows By currency exposure; Over October 2020; Figures in USD Mil;
Showing the Flows for top 10 AUM currency exposures
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 -$3 of notional flow
Net Position The notional AUM in long ETPs minus the notional AUM in short ETPs. A negative figure
indicates investors have a net short, or net bearish position; a positive figure indicates a
net long or net bullish position
Net Position Flows The notional flow in long ETPs minus the notional flow in short ETPs.
A negative figure indicates net bearish flows, while a positive figure indicates net bullish
flows
104
38
13
218
13 7 2
88
5 2
0
50
100
150
200
2502
-0 -0
4
0 0 0
-8
-0
0
-10
-8
-6
-4
-2
0
2
4
6
0
50
100
150
200
250
-3x -2x -1x 2x 3x Other
-10
-8
-6
-4
-2
0
2
4
6
-3x -2x -1x 2x 3x Other
41 4
41
484
2 11 6 0 0 4
152
58 24
266
48 21 3
88
11 4
0
100
200
300
400
500
600
Long Short
-13
0
-1
13
0 1
0 0 0 0
15
-0 -1
0 1
-0 -0
-8
-0 -0
-15
-10
-5
0
5
10
15
20
Long Short
-192
-54
17
218
-45
-10
4
-88
-11 -1
-250
-200
-150
-100
-50
0
50
100
150
200
250
-2
2 0
18
-1
1 0
8
0 0
-5
0
5
10
15
20
18
Global Currencies - Historical View
Net Position and Average Investor Leverage Cumulative Asset Flows into Short / Long ETPs
and Net Position Flows
EU
R-U
SD
E
UR
-GB
P
JP
Y-U
SD
G
BP
-US
D
-1.00x
-0.50x
0.50x
1.00x
1.50x
-300
-200
-100
0
100
200
300
Ave
rage
Inve
sto
r Le
vera
ge
Net
Po
siti
on
($m
)
Net Position, ($m, LHS)
Average Investor Leverage (RHS)
-300
-200
-100
0
100
200
300
400
500
600
700
Net Position Flow ($m)
Asset Flows into Long ETPs ($m)
Asset Flows into Short ETP ($m)
-2.00x
-1.80x
-1.60x
-1.40x
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-18
-16
-14
-12
-10
-8
-6
-4
-2
0
-4
-2
0
2
4
6
8
10
12
-1.80x
-1.60x
-1.40x
-1.20x
-1.00x
-0.80x
-0.60x
-0.40x
-0.20x
-180
-160
-140
-120
-100
-80
-60
-40
-20
0
-60
-40
-20
0
20
40
60
80
100
120
-1.00x
-0.50x
0.50x
1.00x
1.50x
2.00x
2.50x
3.00x
3.50x
-40
-20
0
20
40
60
80
100
-60
-50
-40
-30
-20
-10
0
10
20
30
40
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 −1𝑥,
−2𝑥 or lower.
Leveraged ETPs are ETPs whose leverage factor with respect to the underlying asset class being tracked is positive and
higher than +1𝑥.
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 31 October 2020. 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
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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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