Deutsche Boerse has launched two new indices, the DAXplus Minimum Variance Germany and OkoDAX.
DAXplus Minimum Variance Germany tracks a portfolio comprising a maximum of 30 DAX stocks. The individual shares included in the index are selected primarily according to their variance and correlation with each other.
The index will be adjusted on a quarterly basis, and calculated in Euros, US Dollars and British Pounds, as well as in the form of both a price index and a total return index. The individual shares will be capped at 10 percent, while shares with a weighting of 0 percent according to the variance analysis will not be included in index.
“With DAXplus Minimum Variance Germany we are worldwide the first to offer an index designed by the findings of modern portfolio theory and which especially addresses the risk component of investors,” says Holger Wohlenberg, managing director of stock market business development at Deutsche Boerse.
The new OkoDAX selection index tracks right now ten largest stocks from the renewable energies sector in terms of market capitalization.
“The concept of OkoDAX is very convincing,” says Nicolai Tietze, derivates expert of the x-markets team of Deutsche Bank. “Investors are focusing on a rule-based and transparent methodology with this product that comes from a well accepted index provider. We are happy partnering with Deutsche Boerse.”