db x-trackers, Deutsche Bank’s exchange-traded fund platform, is launching seven daily two times leveraged ETFs across Europe with three tracking daily leveraged short indices and four tracking daily leveraged long indices from recognised index providers.
The three daily leveraged short ETFs track indices that provide two times daily inverse exposure to the Dax, Euro Stoxx 50 and S&P 500.
The four daily leveraged long ETFs track indices that provide two times daily long exposure to the Dax, Euro Stoxx 50, FTSE 100 and S&P 500.
The launch of the daily leveraged ETFs complements the range of 16 daily one times short equity ETFs from db x-trackers.
The daily leveraged ETFs are suitable for financially sophisticated institutional investors who want to use them for short-term trading or hedging strategies to react in real time to intra-day market fluctuations and take advantage of rising or declining markets.
Thorsten Michalik (pictured), head of db x-trackers, says: “Our experience of marketing the range of db x-trackers short ETFs has shown that there are many institutional investors who want to take tactical leveraged or short positions in their portfolios but do not necessarily have the infrastructure to use derivatives or to go short through borrowing ETF shares. When used correctly, the daily leveraged ETFs can provide sophisticated institutional investors with a liquid and efficient way to implement short term trading or hedging strategies within their portfolios.”