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Overview: Benefits and Risks

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at

Short and Leveraged ETPs provide robust, transparent, collateralised, secure, and cost-efficient exposure to underlying indices, commodities, and individual stocks, while retaining the accessibility and trading of ordinary shares.

ETPs are traded on stock exchanges throughout the day just like a share, enabling investors to gain exposure to a wide range of investments with a single trade. They bring certain features that make them compelling for investors and below we highlight some of the benefits of ETPs for investors:

Benefits:

Buy/Sell Flexibility: Leverage Shares ETPs are traded on the major UK & European stock exchanges, allowing investors to buy and sell during local trading hours. ETPs can be traded individually, just like a share in a SIPP, ISA, or regular dealing account. Entry and exit in ETPs is the same as in shares, with a corresponding two-day settlement period.

Diversification: ETPs can help Investors diversify their portfolio across asset classes, sectors and geographies that otherwise could be difficult to access. For example, Leverage Shares ETPs cover market indices, specific market sectors, commodities, and specific companies. Using ETPs, investors can quickly and easily add to or build a portfolio that covers many different asset classes and geographies.

Cost Efficiency: ETPs are cost effective on many levels. The first level of cost efficiency comes down to the fees charged by the ETP provider. ETPs are usually able to achieve lower operating costs and offer lower management fees than other forms of leveraged instruments like CFDs and factor certificates.

Liquidity: ETPs are traded on exchanges, therefore in normal market conditions investors can buy and sell ETPs throughout the day. This intra-day liquidity enables investors to quickly move in or out of a market. Like with traditional ETFs, investors are better off looking through the underlying instrument for true indication of liquidity.

Leverage: Gain amplified exposure to the daily performance of the underlying asset.

Directional: Availability of long or short positions for directional investment or hedging.

Access: ETPs provide access to a wide range of underlying assets.

Risk Management: In extreme market conditions where markets move dramatically, losses can be significantly reduced by the Air Bag Mechanism built into Leverage Shares ETPs.

Loss limited to the capital invested: The maximum loss an investor can incur is the amount invested – nothing more.

Risks:

As with any investment, ETPs involve risk. The higher the expected return of an investment, the higher the risk and the greater the variability of returns. Consideration should be given on how an investment in ETPs fits the overall investment portfolio as ETPs have specific risks that investors should be aware of.

Market risk: Market conditions (for example, a lack of liquidity in volatile markets) may make it difficult to buy or sell ETPs in certain circumstances. At times the return of an ETP may deviate from the return of the tracked index or benchmark.

Regulatory and tax risk: Risk that a government or a regulator may introduce regulatory or tax changes which can affect the value of securities in which the ETP invests, the value of the ETP units or the tax treatment of the ETP.

Capital risk: Capital is fully at risk and is not covered by the provisions of the Financial Services Compensation Scheme (“FSCS”), or any similar scheme.

Leverage risk: If an investment results in a loss, such a loss will be increased by 2, 3 or 5 times, depending on the leverage used, which is greater than a direct investment in the underlying asset.

Currency risk: If the underlying asset is quoted in a currency different from the listing currency, exchange rate fluctuations between these currencies would impact the price of the product (unless the product incorporates a currency hedge).

Compound returns: Gains and losses are compounded over periods of more than one trading day, and as such will deviate from the leveraged performance of the underlying asset.

Counterparty / Issuer risk: If the issuer were to default or become insolvent, the product will terminate. The amount investor would receive back depends on the value of a basket of collateral assets. That said, Leverage Shares ETPs are fully collateralised and have a 3rd party Trustee that acts independently for the benefit and in the interest of securityholders minimising credit risk.

Liquidity risk: ETPs may be susceptible to liquidity risk. Their liquidity will generally correlate to the liquidity in the market for the underlying asset. Therefore, if the market for the underlying becomes illiquid, it is likely that the ETP product will also become illiquid.

Prepayment risk: Leverage Shares reserves the right to make adjustments or substitutions, or even prepay the product, especially in case of events affecting the underlying asset. The early redemption of the product may result in total or partial loss of the amount invested.

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

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Sandeep Rao

Research

Sandeep joined Leverage Shares in September 2020. He leads research on existing and new product lines, asset classes, and strategies, with special emphasis on analysis of recent events and developments.

Sandeep has longstanding experience with financial markets. Starting with a Chicago-based hedge fund as a financial engineer, his career has spanned a variety of domains and organizations over a course of 8 years – from Barclays Capital’s Prime Services Division to (most recently) Nasdaq’s Index Research Team.

Sandeep holds an M.S. in Finance as well as an MBA from Illinois Institute of Technology Chicago.

Violeta Todorova

Senior Research

Violeta joined Leverage Shares in September 2022. She is responsible for conducting technical analysis, macro and equity research, providing valuable insights to help shape investment strategies for clients.

Prior to joining LS, Violeta worked at several high-profile investment firms in Australia, such as Tollhurst and Morgans Financial where she spent the past 12 years of her career.

Violeta is a certified market technician from the Australian Technical Analysts Association and holds a Post Graduate Diploma of Applied Finance and Investment from Kaplan Professional (FINSIA), Australia, where she was a lecturer for a number of years.

Julian Manoilov

Marketing Lead

Julian joined Leverage Shares in 2018 as part of the company’s primary expansion in Eastern Europe. He is responsible for web content and raising brand awareness.

Julian has been academically involved with economics, psychology, sociology, European politics & linguistics. He has experience in business development and marketing through business ventures of his own.

For Julian, Leverage Shares is an innovator in the field of finance & fintech, and he always looks forward with excitement to share the next big news with investors in the UK & Europe.

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Head of Communications and Strategy

Oktay joined Leverage Shares in late 2019. He is responsible for driving business growth by maintaining key relationships and developing sales activity across English-speaking markets.

He joined Leverage Shares from UniCredit, where he was a corporate relationship manager for multinationals. His previous experience is in corporate finance and fund administration at firms like IBM Bulgaria and DeGiro / FundShare.

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