STOXX Ltd has announced the launch of a new DAX Uncapped version as well as a new DAX 20 per cent version. The DAX 20 per cent version is aimed, in particular, at investors who are seeking to align with the 20/35 rule as set out in the regulations for index-tracking UCITS.
STOXX writes that the DAX blue-chip index, however, remains subject to the capping rules and will continue to be decisive for correspondingly aligned financial products.
Veronika Kylburg Head of Global Benchmarks, DAX, at STOXX says: “STOXX is committed to providing innovative solutions for global institutional investors, and we are pleased to announce these new versions of the DAX, tailored for those not bound by the EU UCITS Directive related to capping, seeking to track the largest German companies. The DAX product offering now provides investors with the optionality to observe specific weight caps or capture the largest stocks’ full influence.”
Kylburg added: “Our back-tested calculations show no significant differences in the risk and return characteristics between the new uncapped versions and the DAX blue-chip indices, including YTD return, volatility, and Sharpe ratio. However, it should be noted that the new versions may exhibit higher volatility due to their increased reliance on individual stocks.”
