Dow Jones EURO STOXX 50 BuyWrite Index was chosen to serve as the underlying for an exchange-traded fund by Lyxor AM, a wholly owned subsidiary of Societe Generale.
As the first ETF based on the Dow Jones EURO STOXX 50 BuyWrite Index, the Lyxor ETF EURO STOXX 50 BuyWrite began trading 9 January in the Paris Stock Exchange.
“The Dow Jones EURO STOXX 50 BuyWrite Index is a sophisticated tool to enhance returns in bear and sideward markets,” says Lars Hamich, managing director of STOXX Ltd. “Since inception, the Dow Jones EURO STOXX 50 BuyWrite Index has outperformed the Dow Jones EURO STOXX 50 Index by 6.5 percent each year. The Dow Jones EURO STOXX 50 index options are the largest contracts based on open interest globally. This high liquidity is a prerequisite in offering innovative option price based indexes.”
“We are very pleased to launch another exchange-traded fund underlied by a Dow Jones STOXX index,” says Isabelle Bourcier, ETF global coordinator for Lyxor AM. “Based on a common strategy implemented by institutional investors, the Dow Jones EURO STOXX 50 BuyWrite Index provides a tradable and transparent benchmark. We believe that exchange-traded funds based on BuyWrite strategy indexes offer efficient solutions to investors which are neutral or moderately bullish on the Dow Jones EURO STOXX 50 Index.”