If you are looking to invest in leveraged 📈 or inverse ETFs from Europe/U.K., you’ll soon find that popular American products are not generally available through European brokers. Below I have compiled an overview of European leveraged and inverse ETFs, as alternatives to their popular 🦅 U.S. counterparts.
Though providers such as Direxion, ProShares, and VelocityShares offer many leveraged products for indexes, sectors, and commodities, such ETFs (and ETNs) cannot be offered to Europeans due to ⚖️ PRIIPs regulations.
If no suitable European variants exist for your purposes, you can instead buy the U.S. ETFs directly through a U.S. based broker, even while residing in 🌍 Europe. Follow this link to learn more about this method.
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Overview of European leveraged and inverse ETFs
Please find below a compilation of popular U.S. leveraged and inverse ETFs along with their European alternatives.
|Equities||Leverage||U.S. ETF||European alternative|
|S&P 500||3x Long||SPXL, UPRO||WisdomTree|
|2x Long||SPUU, SSO||Xtrackers|
|1x Short||SPDN, SH||Xtrackers|
|3x Short||SPXS, SPXU||WisdomTree|
|Nasdaq 100||3x Long||TQQQ||WisdomTree|
|Emerging Markets||3x Long||EDC||WisdomTree|
|FTSE 100||3x Long||N/A||WisdomTree|
|DAX 30||3x Long||N/A||WisdomTree|
|CAC 40||2x Long||N/A||Lyxor|
|MIB 40||3x Long||N/A||WisdomTree|
|Bonds||Leverage||U.S. ETF||European alternative|
|10Y U.S. Bonds||3x Long||TYD||WisdomTree|
|10Y U.K. Bonds||3x Long||N/A||WisdomTree|
|10Y German Bunds||3x Long||N/A||WisdomTree|
|10Y Italian BTP||3x Long||N/A||WisdomTree|
Unfortunately, there aren’t nearly as many products available to Europeans as to Americans. Thus many specific variants (such as 2x inverse) may be unavailable, sector ETFs are missing altogether, expense ratios 💶 may be higher in Europe, and you may have to deal with lower volume and ETFs only being offered on specific exchanges.
Alternative options for Europeans
Personally I am a big fan of leveraged ETFs, as I got inspired by Hedgefundie’s Excellent Adventure which utilizes ETFs such as TQQQ, UPRO, and TMF.
Additionally, I occasionally buy sector specific ETFs such as DFEN, 💻 SOXL, FAS, and YINN. Since none of these are available in Europe, I developed a method of buying them directly through a U.S. based broker. This will allow you to buy any U.S. domiciled ETF, even if you live in Europe. If you are interested in this method, you can find the guide here.
To obtain leverage on otherwise unleveraged stocks and ETFs, one could also consider the use of CFDs. For more information on that, check out my CFD guide.
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Do you know of any other suitable European alternatives? Leave a comment below and share your 🧠 knowledge!