WisdomTree has launched the first leveraged European defence-focused exchange-traded product (ETP).
The WisdomTree STOXX Europe Aerospace & Defence 3x Daily Leveraged ETP listed on the London Stock Exchange this morning (8 April) with an 0.80% total expense ratio.
It follows the launch of the WisdomTree Europe Defence UCITS ETF last month, which gathered over $500m (£393m) in its first two weeks of trading.
The product launches come as European countries prepare to increase spending on defence in response to geopolitical challenges, following Donald Trump’s re-election in the US and the ongoing war in Ukraine.
The ETP aims to offer ‘pure-play’ exposure to European companies involved in the defence industry, which include manufacturers of civil defence equipment, parts or products, defence electronics and space defence equipment.
Pierre Debru, head of research, Europe, at 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.”