Tabula ICAV has become the latest firm to offer an ETF on Xetra and the Frankfurt Stock Exchange, taking the total number of issuers on the exchange to 26.
The Tabula JP Morgan Global Credit Volatility Premium Index UCITS ETF tracks the difference between realised and implied volatility in the markets for credit default swap (CDS) index options. The index reflects the performance of put options on European and North American High Yield CDS indices and hedges the risk of credit spreads daily through delta hedging.
The strategy seeks to capture the volatility risk premia from selling short-term credit options in European and US high yield while daily hedging exposure to underlying credit spreads (delta-hedging).
The underlying High Yield CDS indices include the iTraxx Crossover 5y Index, consisting of 75 European companies, and the CDX HY 5y Index, consisting of 100 North American companies. Both indices are equally weighted and rebalanced monthly.
TVOL is the first of Tabula’s four ETFs to be listed on Xetra. Tabula’s entire fund range, which also includes smart beta credit, and long and short high yield credit spread strategies, is approved for distribution in Germany. Tabula’s regional activities are overseen by its dedicated German Coverage Director, Gereon Tewes.
“We are focused on delivering a broad range of fixed income factors which were previously only available to sophisticated investors,” says Tabula CEO Michael John Lytle. “There is a growing need for more innovative fixed income tools to manage risk and navigate markets, and we are excited to be able to offer this product to German investors.”
“We are pleased to have gained Tabula ICAV as another new ETF issuer for Xetra trading. The first ETF from the Tabula product series expands our range of bond ETFs with additional access to the credit default swap market,” says Martin Reck, Managing Director Cash Market at Deutsche Börse.