European equity index provider Stoxx has announced that the Dow Jones Euro Stoxx 50 Double Short and Dow Jones Stoxx 600 Double Short indexes have been licensed to BNP Paribas Asset Man
European equity index provider Stoxx has announced that the Dow Jones Euro Stoxx 50 Double Short and Dow Jones Stoxx 600 Double Short indexes have been licensed to BNP Paribas Asset Management to serve as the basis for two exchange traded funds.
The EasyETF Euro Stoxx 50 Double Short and EasyETF DJ Stoxx 600 Double Short will be available on Euronext Paris today.
The Dow Jones Euro Stoxx 50 Double Short Index replicates a double short investment strategy that is inversely linked to twice the performance of the Dow Jones Euro Stoxx 50 Total Return Index. A negative performance of the blue-chip index results in twice the positive change in the Dow Jones Euro Stoxx 50 Double Short Index, and vice versa.
The Dow Jones Stoxx 600 Double Short Index follows the same methodology, but is linked to the performance of the Dow Jones Stoxx 600 Index.
‘The Dow Jones Euro Stoxx 50 Double Short and Dow Jones Stoxx 600 Double Short indexes provide a unique and innovative methodology aimed at market participants who seek leveraged upside exposure during a bearish market environment,’ says Ricardo Manrique, chief executive officer, Stoxx. ‘In other words, if the Dow Jones Euro Stoxx 50 is down five per cent, the Dow Jones Euro Stoxx 50 Double Short will be up ten per cent, and the same applies to the Dow Jones Stoxx 600 Double Short Index.’
Daniele Tohmé-Adet, head of ETFs and indexed funds, BNP Paribas Asset Management, adds: ‘The EasyETF Dow Jones Euro Stoxx 50 Double Short and EasyETF Dow Jones Stoxx 600 Double Short are Ucit III compliant tools, replicating the transparent, systematic strategies embedded in the Dow Jones Euro Stoxx 50 Double Short and Dow Jones Stoxx 600 Double Short indexes. The indexes measure exactly twice the performance of the Dow Jones Euro Stoxx 50 and Dow Jones Stoxx 600 indexes in downside markets not taking into account the effect of the repo.’
The Dow Jones Euro Stoxx 50 Double Short and Dow Jones Stoxx 600 Double Short indexes are based on the total return versions of the Dow Jones Euro Stoxx 50 Index and Dow Jones Stoxx 600 Index respectively, thus taking into account the expense of dividends on a double short strategy performance.
Additionally, the cash component is reflected via the interest earned on the investment. Historical data for both new Indexes is available back to 31 December 1991.
As of 24 February 2009, the Dow Jones Euro Stoxx 50 Double Short Index is up 46.20 per cent for the year 2009. The underlying Dow Jones Euro Stoxx 50 Index represents 50 supersector leaders in the 12 euro zone countries of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal and Spain.
The Dow Jones Stoxx 600 Double Short Index is up 24.83 per cent for the same time period. Its underlying index, the Dow Jones Stoxx 600, represents 600 large, mid and small capitalization companies in 18 European countries.
