The Euro Stoxx 50 Daily Double Short and Euro Stoxx 50 Daily Leverage indices have been licensed to Deutsche Bank to serve as the underlying for two exchange-traded funds.
The db x-trackers Euro Stoxx 50 Double Short Daily ETF and db x-trackers Euro Stoxx 50 Leveraged Daily ETF were listed at Deutsche Boerse yesterday.
“These two indices are part of Stoxx’s innovative strategy index family, which replicates complex key investment approaches in transparent and rules-based indices,” says Hartmut Graf (pictured), chief executive officer, Stoxx. “While the Euro Stoxx 50 Daily Double Short Index is a valuable tool for market participants to generate positive returns in downward markets, the Euro Stoxx 50 Daily Leverage Index doubles returns in bullish markets.”
The Euro Stoxx 50 Daily Double Short Index replicates a double short investment strategy that is inversely linked to twice the performance of the Euro Stoxx 50 Gross Return Index. A negative performance of the blue-chip index results in twice the positive change in Euro Stoxx 50 Daily Double Short Index, and vice versa.
The Euro Stoxx 50 Daily Leverage Index replicates a leveraged investment strategy linked to the daily performance of the Euro Stoxx 50 Price Index, i.e. a leverage factor of two is applied. If the Euro Stoxx 50 is up five per cent, the Euro Stoxx 50 Daily Leverage Index is up ten per cent respectively. The cost of borrowing is also taken into account in the index calculation.
The underlying Euro Stoxx 50 Index represents 50 supersector leaders in the 12 eurozone countries of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal and Spain.