These are exchange-traded products that utilize options strategies – such as covered calls or put selling – to generate income.

The term “Exchange Traded Product” (ETP) is a broad term that encompasses Exchange Traded Funds (ETFs), Exchange Traded Commodities (ETCs), and Exchange Traded Notes (ETNs). ETPs seek to provide returns based on the price movements of an underlying asset or benchmark, such as an index, commodity, or individual stock. However, ETFs, ETCs, and ETNs represent different structures for achieving this exposure and can pose different risks.

ETPs, such as ETCs and ETNs, are structured as debt securities, but unlike conventional bonds, these instruments pay no interest and are not rated. ETPs can give investors a means of diversifying investment portfolios without the need to:

• Enter into swap agreements or forward contracts
• Take physical delivery of the underlying commodity
• Hold securities that constitute the underlying index

Importantly, ETPs are different than ETFs in a number of ways. ETPs (including ETCs and ETNs) are not funds, and therefore lie outside the remit of UCITs — the Undertakings for Collective Investments in Transferable Securities.

However, while ETPs are not UCITS compliant, they may be UCITS eligible. This means that they are investments which — while again not themselves compliant with UCITS — are capable of being an eligible investment for another UCITS fund.

Leverage Shares Exchange Traded Products (ETPs) are debt instruments issued by a special purpose vehicle (SPV). Each ETP is a separate Series of the SPV, and is a debt security that delivers the returns of the assets held by the Series. Each Series invests its own assets and the assets borrowed on margin in a single stock, such as the common stock of Apple Inc. (AAPL), to achieve leveraged exposure to that equity as per its investment objective.

• Exposure to the underlying stock is managed to deliver two times the return (gain or loss) of the underlying stock on a daily basis (net of fees and expenses)
• Leverage Shares do not have credit risk because each Series of the SPV has physical ownership of the underlying assets and does not use derivatives, like swaps, to achieve its leverage
• Each ETP is fully collateralized, as its subscription proceeds are invested directly in shares of the underlying equity security, effectively negating potential credit risk
• Leverage Shares ETPs have access to institutional pricing for margin borrowing, and therefore can be a cost-effective means for investors to gain leveraged exposure to individual stocks

Yes, several Leverage Shares Exchange Traded Products (ETPs) (e.g., TSLS, AMZS, APLS) provide short exposure to the underlying security. 

Yes, several Leverage Shares Exchange Traded Products (ETPs) (e.g., TSLS, AMZS, APLS) provide short exposure to the underlying security. 

Yes, several Leverage Shares Exchange Traded Products (ETPs) (e.g., TSLS, AMZS, APLS) provide short exposure to the underlying security. 

Yes, several Leverage Shares Exchange Traded Products (ETPs) (e.g., TSLS, AMZS, APLS) provide short exposure to the underlying security. 

Yes, several Leverage Shares Exchange Traded Products (ETPs) (e.g., TSLS, AMZS, APLS) provide short exposure to the underlying security. 

Yes, several Leverage Shares Exchange Traded Products (ETPs) (e.g., TSLS, AMZS, APLS) provide short exposure to the underlying security. 

Yes, several Leverage Shares Exchange Traded Products (ETPs) (e.g., TSLS, AMZS, APLS) provide short exposure to the underlying security. 

Yes, several Leverage Shares Exchange Traded Products (ETPs) (e.g., TSLS, AMZS, APLS) provide short exposure to the underlying security.