Leverage Shares Expands ETP Offerings with New Leveraged Single-Stock Products

Leverage Shares Introduces New Leveraged Single-Stock ETPs

Leverage Shares, a prominent issuer of exchange-traded products (ETPs) with approximately $1.5 billion in assets under management (AUM), announced a significant expansion of its offerings on the London Stock Exchange on September 16, 2025. This initiative includes the introduction of 19 new ETPs, notably featuring the first-ever 3x leveraged ETPs designed to track the daily performance of individual stocks such as Robinhood (HOOD), Hims & Hers (HIMS), and UnitedHealth (UNH).

Detailing the Expanded Product Line

The new listings include 3x leveraged ETPs for Robinhood, Hims & Hers, and UnitedHealth, aiming to provide three times the daily return of their respective underlying single stocks. Additionally, Leverage Shares has introduced a range of new leveraged and inverse exposures to other global industry leaders. These encompass both 3x Long and -3x Short (inverse) products for companies like Intel (INTC), Broadcom (AVGO), ASML, and Eli Lilly (LLY). Furthermore, 3x Long ETPs have been launched for Futu (FUTU) and Rheinmetall (RHM). The expansion also covers new index ETPs, such as 5x Long and 5x Short FTSE 100 ETPs, and 5x Long and 5x Short FTSE MIB ETPs, alongside a 3x Long FAANG+ ETP. These products are designed to be physically-backed, with annual management fees, such as the 0.75% for the 3x Long UnitedHealth (UNH) ETP and 3x Long Hims & Hers (HIMS) ETP.

Market Reception and Analytical Impact

The introduction of these highly leveraged single-stock ETPs is anticipated to increase speculative trading activity and introduce higher volatility in the underlying equities. While offering sophisticated tools for active traders, these products inherently carry substantial risk due to their amplified exposure. Oktay Kavrak, Head of Comms & Strategy at Leverage Shares, commented on the launch, stating:

"Demand for leveraged and inverse ETPs continues to grow as investors look to trade both sides of the market. With record trading activity and this latest expansion, Leverage Shares is reinforcing its role as the go-to platform for active traders looking for precision, choice, and transparency."

This sentiment aligns with the company's reported growth, which saw its turnover year-to-date through August 2025 increase by 86% compared to 2024, with average monthly trading up by nearly 50%. However, initial trading data for some of the new products, such as the 3x Long Hims & Hers (HIMS) ETP (HIM3), showed very low immediate volume, suggesting a potentially cautious or gradual investor uptake for these specific new, high-risk offerings.

Broader Market Context and Implications

The growing popularity of leveraged and inverse ETPs has been a notable trend in financial markets, with total assets in these funds reaching a record $117 billion this year. While these products are designed for short-term trading strategies and typically marketed to experienced investors, their impact on broader market dynamics has become more pronounced. For instance, the daily rebalancing activities of leveraged ETPs have been criticized for exacerbating stock market volatility, particularly in sectors like technology and semiconductors. As an illustration, Morgan Stanley data indicates that for every 1% drop in stock prices, leveraged ETPs collectively need to sell nearly $7 billion worth of equities, potentially amplifying market moves.

Historical precedents further underscore the risks. Several leveraged single-stock ETPs launched in 2022, offering amplified exposure to companies like MicroStrategy and Tesla, experienced sharp declines of 80% to 83% of their value after initial surges. Reflecting on the nature of these investments, Morningstar analyst Jeffrey Ptak observed:

"It is like a thresher... Money goes in and it doesn't come out."

This highlights the critical importance of active management and understanding the potential for severe losses.

Looking Ahead

The expansion by Leverage Shares reinforces its role as a key provider in the European leveraged ETP market, catering to active traders seeking precise and diverse tools. The introduction of these products allows investors to implement high-conviction tactical bets or hedging strategies on individual stocks without requiring traditional margin or CFD accounts. Moving forward, market participants will closely monitor the impact of these newly launched ETPs on the volatility of their underlying assets and the broader market landscape. The inherent high degree of risk associated with leveraged products necessitates that investors fully comprehend the potential for both magnified gains and losses, emphasizing their suitability primarily for sophisticated, short-term trading strategies.