WisdomTree Gilts 10Y 3x Daily Leveraged (3GIL)

Overview

The "Boost Gilts 10Y 3x Leverage Daily ETP" represents a sophisticated financial instrument designed for investors seeking exposure to the UK government bond market with a leveraged strategy. This Exchange-Traded Product (ETP) is designed to offer three times the daily performance of its underlying index, the Long Gilt Rolling Future index. This index is primarily concerned with frontmonth Long Gilt futures, which are financial derivatives based on UK government bonds having a maturity period between 8.75 to 13 years. These futures are traded on the London International Financial Futures and Options Exchange (LIFFE). An appealing aspect of this ETP is its fully collateralised nature, ensuring that it is backed by secure assets, and its eligibility for UCITS, which denotes compliance with European Union standards for investment products. The product also incorporates an interest revenue mechanism earned on the collateralised amount, adding an additional layer of potential return for investors.

Products and Services

• 3x Leverage Daily ETP

  This unique product triples the daily outcome of the Long Gilt Rolling Future Index. Designed for investors who are optimistic about the performance of UK government bonds over a specific period, the ETP amplifies gains. However, potential investors should note the high risk associated with leveraged investments, as losses are also magnified.

• Long Gilt Rolling Future Index Tracking

  The Fundamental index that this ETP tracks is tied to the performance of frontmonth Long Gilt futures. These futures contracts are a bet on the direction of the UK government bonds market, specifically focusing on bonds with a maturity of approximately 8.75 to 13 years. The selection of this maturity range targets a specific segment of the yield curve, often sought after for its balance between yield and risk.

• Interest Revenue on Collateral

  In addition to the leveraged exposure to the Long Gilt futures, this ETP offers an innovative aspect where the interest revenue earned on the fully collateralised amount is factored into the product's return. This mechanism provides an incremental income, enhancing the overall yield potential for the ETP holders. It serves as a distinguishing feature, setting the Boost Gilts 10Y 3x Leverage Daily ETP apart from conventional investment products.