Apple (AAPL) is over $130, Tesla (TSLA) is over $700 and Amazon (AMZN) is north of $3,000. At these prices, it’s very difficult for retail investors to build a portfolio of leading U.S. stocks without a significant outlay of funds. To provide our investors with the means and opportunity to profit from the performance of some of the top-performing stocks today, Leverage Shares brings to you a new suite of products: the Stock Tracker ETPs.
What Are Stock Tracker ETPs?
Stock Tracker ETPs a.k.a. “1x ETPs” give investors 1:1 exposure to the underlying stocks being tracked. While technically similar to “pure beta” ETFs, there is a key difference here: while “pure beta” ETFs offer a 1:1 exposure to a basket of stocks, our 1x ETPs offer exposure to a single company’s stock. When there’s a change in the underlying stock’s value, the investor can expect the 1x ETP’s price to move in the same direction and with a similar magnitude.
Price and Currency Choice Advantages
When it comes to the stocks we had mentioned earlier (as well many other top stocks our 1x ETPs would cover), the price is the biggest barrier to investors looking to cash in their performance. This problem is handily covered by our 1x ETPs: they start at $5 (and its equivalent value in UK £ and EUR). To be precise, for as little as $5, an investor can lock into the performance of these stocks and earn returns that are almost exactly similar to what owing stock would have entailed.
Another issue that dogs investors looking to buy high-performance stocks is that if they’re denominated in US$ and the investor trades in a European currency, they might have to factor in FX rates. Our 1x ETPs are denominated in three currencies – US dollars, Euros as well as British pounds – to give investors increased flexibility in investment choices.
Trading Hours Advantage
Another advantage that 1x ETP has is that, unlike their underlying US-listed stocks, these products are traded during European exchange hours. We had illustrated in an earlier article the limited overlap between US and European exchange hours:
