Everyday British investors will for the first time be able to invest in Cathie Woods’s Ark and Warren Buffet’s best-known funds for a fraction of the price.
Leverage Shares, a London-based company, has launched today a range of ETPs on Euronext and London Stock Exchange. This will allow customers to access the strategy.
This brings to 145 the number of ETPs that track stocks such as Tesla, Amazon, Facebook and Amazon.
Investors have now the option to bet against or on three Cathie Woods Ark Invest funds
Among the products making their debut today are three of Woods’ Ark Investor funds: the $12.2billion Innovation, $3billion Next Generation Internet and $4billion Genomic Revolution strategies.
Woods founded the firm in 2014. They have made aggressive investments on tech companies, including Tesla. But, they are now facing increasing pressure from some of their holdings as rising interest rates threaten to push them out of business.
Ark’s Innovation ETF has generated average annual gains of around 40 per cent over the past five years but is down 25 per cent this year.
Funds for the Next Generation and Genomic Revolution are both down by 14 and 36%, respectively.
Professionals can already bet against Ark using derivatives but the new Leveraged Shares products will give retail investors the chance to bet on or against Woods’ firm. You can choose from short, neutral, or leveraged options.
Alongside the Ark products, Leverage Shares is launching 42 ETPs on the London Stock Exchange, covering growth areas like healthcare, airlines and financials at an entry point of £5.
Among these include a Berkshire Hathaway product, giving investors the chance to invest in Buffet’s firm for a fraction of the $430,000 price it is currently trading at.
Those who are particularly bullish on Buffet’s investments can invest in the 2x Long Berkshire Hathaway strategy.
‘At Leverage Shares we are determined to democratise access to some of the biggest and most successful businesses in the investment universe,’ said chief operating officer Dr Dobormir Kamburov.
“For this reason we pursued an offer of trackers that allow investors to own partial shares in security. We already have these on offer for big names such as Tesla, Netflix and Microsoft and wanted to add some diversification to big tech through Berkshire Hathaway, some healthcare names, airlines and other growth stock trackers.’
New tracker ETPs invest in physical stocks in US-listed ETFs. They will be charged 0.35 percent per stock for unleveraged products, 0.75 percent per short ETP and 0.75% for long and leveraged ETPs.