On June 16, ETF Managers Group launched its first leveraged and inverse products, including a 2x bullish play on its travel tech fund and a pair of 2x bull/bear vehicles based on its junior silver miners ETF.
A 2x leveraged ETF provides 200% of the daily investment return of its underlying index (or -200%, in the case of a -2x ETF). The exposure resets daily, meaning the cumulative return of these ETFs can differ widely from just a simple multiplier on a given benchmark index.
About the New ETFs
The ETFMG 2x Daily Travel Tech ETF (AWYX) provides 200% of the return of the benchmark underpinning the firm’s existing ETFMG Travel Tech ETF (AWAY), which covers travel website operators and travel tech firms.
AWAY has benefitted substantially from the re-opening trade, and over the past year the fund has seen $354 million in new net inflows.
Meanwhile, the ETFMG Prime 2x Daily Junior Silver Miners ETF (SILX) and the ETFMG Prime 2x Daily Inverse Junior Silver Miners ETF (SINV) are 2x/-2x plays on the ETFMG Prime Junior Silver Miners ETF (SILJ).
SILJ is the only ETF on the market to track junior silver miners, specifically. (There are two other silver miners ETFs, but they have no such limitation on market capitalization.) Small cap silver miners tend to be more involved with exploration and production.
Over the past 12 months, SILJ has seen substantial inflows, propelled by a Reddit-fueled interest in silver and silver-adjacent investments. In the past year, the fund has seen $668 million in net inflows.
“We’re very excited to be the first issuer to provide investors a way to gain leveraged exposure to some of our existing first-to-market thematic ETFs,” says Sam Masucci, CEO and Founder of ETFMG, in the press release announcing the launch. “There is clear demand for leveraged ETFs, and these new products will give traders the means to access high-growth themes with magnified exposure.”
“Thematic and innovative index creation is at the heart of our company, and we are delighted that ETFMG has selected Prime Indexes to support the growth of its ETF suite,” said Kris Monaco, Managing Partner of Level ETF Ventures, owner of Prime Indexes, which provides the indexes on which AWAY and SILJ are based. “We are proud to expand our relationship with ETFMG, and confident that its new leveraged ETFs will benefit from the success already achieved in those same themes.”
The three new ETFs will trade on NYSE. The firm now has 11 ETFs in its product suite, with assets under management totaling $7.3 billion.
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