ETFS 3x Long GBP Short USD (LGB3) is designed to provide investors with a 'leveraged long' exposure to Pounds Sterling ("GBP") relative to US Dollars ("USD") by tracking the MSFX Triple Long British Pound Index (TR) (the "Index"), which aims to reflect three times the performance of a position in forward contracts which are rolled on a daily basis.
LGB3 is an exchange traded currency ("ETC"). Its securities can be created and redeemed on demand by authorised participants and traded on exchange just like shares in a company.
The Index provides a 3x leveraged 'long' exposure to: (i) GBP relative to USD. For example, if GBP were to rise in value relative to USD, the Index (tracked by the ETC) would rise in value by three times the same amount. Conversely if GBP were to decrease in value relative to USD, the Index would decrease in value by three times the same amount; and (ii) an interest rate differential reflecting the difference between the GBP and the USD exchange rates.