STOXX Ltd., the European index provider, has licenced the Dow Jones STOXX 600 Banks Short, Dow Jones STOXX 600 Health Care Short, Dow Jones STOXX 600 Oil & Gas Short, Dow Jones STOXX 600 Technology Short and Dow Jones STOXX 600 Telecommunications Short Indexes to underlie five exchange-traded funds (ETFs).
The ETFs began trading at Deutsche Boerse, Frankfurt today.
This is the first time that the Dow Jones STOXX 600 Supersector Short Indexes, which are part of the Dow Jones STOXX strategy index series, have been licensed as the basis for ETFs.
“These indexes represent the next generation of indexes that enable investors to further diversify their portfolio with sophisticated investment strategies. The innovative Dow Jones STOXX 600 Supersector Short Indexes are linked to the daily performance of the Dow Jones STOXX 600 Supersector Indexes in an inverse way and allow investors to participate positively in sector performances during bear markets,” says Werner Brki, chairman, STOXX supervisory board.
Launched on 2 October 2007, the Dow Jones STOXX 600 Supersector Short Indexes replicate a short investment strategy. The indexes are based on the 18 Dow Jones STOXX 600 Supersector Indexes, which represent the largest European companies in each of the 18 Supersectors defined by the Industry Classification Benchmark (ICB).
The Dow Jones STOXX 600 Supersector Short Indexes are inversely linked to the daily performance of the Dow Jones STOXX 600 Supersector Indexes a negative performance of a Dow Jones STOXX 600 Supersector Index results in a positive performance of its respective Dow Jones STOXX 600 Supersector Short Index, and vice versa. The cost of dividends and the benefit of earning interest are also taken into account in the index calculation.
As of 14 March 2008, the Dow Jones STOXX 600 Banks Short Index has a return of 41.43% since its introduction on 2 October 2007. For the same time period, the Dow Jones STOXX 600 Health Care Short Index is up 27.59 %, the Dow Jones STOXX 600 Oil & Gas Short Index gained 14.43%, the Dow Jones STOXX 600 Technology Short Index has gained 46.59% and the Dow Jones STOXX 600 Telecommunications Short Index is up 22.78%.
Historical data for the Dow Jones STOXX 600 Supersector Short Indexes are available back to 31 December 1991.
The Dow Jones STOXX strategy index series includes the Dow Jones STOXX 600 Supersector Short Indexes, Dow Jones EURO STOXX 50 Leveraged Index, Dow Jones EURO STOXX 50 Short Index, Dow Jones EURO STOXX 50 BuyWrite Index and the VSTOXX and is designed to track enhanced investment strategies.
The licencing of the five Dow Jones STOXX 600 Short Sector Indexes boost the number of ETFs that are based on the Dow Jones STOXX strategy indexes to eight.