Leonteq in collaboration with Alquant, a Swiss quantitative asset manager, are launching three novel ETPs+. These products are combining Alquant’s cutting-edge quantitative risk signals with Leonteq’s expertise in product and investible index structuring.

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The collaboration between Alquant and Leonteq in launching these ETPs+ aims to bring innovative investment strategies and advanced investment technologies to a broader investor base and enhance the landscape of financial products available in the market.

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The Leonteq Alquant products are structured to participate in the growth of the equity market while providing a protective function to shield investments during volatile market periods. Using Alquant’s risk indicators, these products dynamically manage equity exposure in a risk-aware manner without reliance on market forecasts. The following ETPs+ are now listed on SIX Swiss Exchange AG as well as on BX Swiss AG and are available to institutional and retail investors in Switzerland:

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1. ETP+ on the Leonteq Alquant Dynamic US Equity Index (AQUS): This product actively engages in the growth of the US equity market, simultaneously employing a systematic approach to mitigate losses in unstable market phases. The equity exposure is controlled based on Alquant’s risk management engine, adapting between 0% in high-risk periods to potentially 140% in more stable conditions.
2. ETP+ on the Leonteq Alquant Dynamic Tech Equity Index (AQUST): Similar in strategy to AQUS, AQUST is tailored towards the growth of the US tech equity market, employing analogous risk mitigation methods.
3. ETP+ on the Leonteq Alquant Long-Short US Index (AQLS): AQLS aims for capital appreciation irrespective of US equity market direction, utilizing Alquant's risk management engine to alternate between long and short positions in the US stock market, aiming to benefit in varying market conditions.

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Alessandro Ricci, Head Investment Solutions of Leonteq, states: “Alquant’s quantitative risk signals have, since their launch in November 2018, demonstrated their capability to add value in diverse market environments. With the launch of the Leonteq Alquant ETPs+ on our proprietary indices, we are delivering enhanced investor safety through the ETP+ wrapper as well as further expanding our offering of Quantitative Investment Strategies to our clients, which aim to bridge the gap between passive and active exposure.”

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Prof. Dr. Erich Walter Farkas, Program Director of the Master of Science UZH ETH in Quantitative Finance, and member of Alquant’s expert group, comments: "I am thrilled with the launch of the innovative ETPs+ from Alquant and Leonteq. This is a significant step forward in the application of modern quantitative finance and risk management methods to investment products. These ETPs+ offer investors a new level of sophistication, particularly in navigating the complexities of today's financial markets, and illustrating the impact of academic insights on real-world finance."

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Differentiating factors to existing ETP issuers

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Leonteq is one of the few issuers of ETP products in Switzerland which is licensed as a securities firm by FINMA. Furthermore, the company has an investment grade rating assigned by Fitch Ratings Ltd., an ESG-Rating of “AA” assigned by MSCI, a strong shareholders’ equity totalling around CHF 780 million at end 2023, and a proven track record spanning more than 15 years.

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ETP+ provides investors with enhanced safety, by using collateral held by SIX SIS AG and monitored by SIX Repo AG. Both custodian and collateral agent are based in Switzerland and daily independent checks contribute to mitigate the issuer risk. For its innovative ETP+ concept, Leonteq was awarded with “Best newcomer” and “Best ETP issuer” at the Swiss ETF awards 2023.

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Learn more about the ETPs+ linked to the Leonteq Alquant Dynamic US Equity Index, Leonteq Alquant Dynamic Tech Equity Index and the Leonteq Alquant Long-Short US Index.

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