ETF Securities, the global pioneer in Exchange Traded Commodities (ETCs) and 3rd generation Exchange Traded Funds (ETFs) launched a platform of ETFs tracking double leveraged (2x) and double short (-2x) benchmarks on the Amsterdam market of NYSE Euronext. The ETFs are based on the Dow Jones EURO STOXX 50® and the CAC 40®.
The ETFS Dow Jones EURO STOXX 50 Double Short (2x) Fund, the ETFS Dow Jones EURO STOXX 50 Leveraged (2x) Fund, the ETFS CAC 40 2x Short Fund and the ETFS CAC 40 2x Long Fund track double leveraged (2x) and double short (-2x) equity indices, which provide 2x long or 2x short exposure to the daily % return of various benchmarks through a simple ETF, allowing investors to express directional views on major European equities. These ETFs are intended for investors who do not wish to use derivatives to set up short-term leveraged directional strategies. They can also be used to hedge a portfolio or to implement market neutral, long-short and pairs trading strategies. The products also allow traditional long managers, including UCITS funds, to use leveraged long and leveraged inverse strategies without the need to enter into complex and costly stock loan arrangements. In today’s market where it is increasingly difficult to obtain credit and margin, ETFs tracking short and leveraged equity indices free up additional capital for investor’s to gain additional portfolio diversification.
The new double leveraged (2x) and double short (-2x) ETFs complement the existing platform of 13 equity ETFs from ETF Securities, providing exposure to global and European themes such as Alternative Energy, Water, Agribusiness, Coal, Steel, Shipping and Nuclear Power.
NYSE Euronext lists a wide range of ETFs. With these new double leveraged and double short ETFs, it now offers a total of 416 ETFs with 464 listings from 14 Issuers. These ETFs cover more of 275 indices including an extended range of assets and strategies.
Mark Weeks, Chief Executive of the ETF Exchange, said: “I am very excited by this offering ETF Securities is bringing to the market. It is a very valuable additional tool set that all investors will be able to access. Many investors are looking for safe and secure products that provide very liquid market exposure and these products do just that.”
Scott Ebner, senior vice president, European Exchange Traded Products NYSE Euronext, said: “Leveraged and short exposure ETFs and ETVs have been highly popular for investors in Europe and the US, where trading volumes and AUM have grown dramatically over the last few years as investors seek efficient investment and trading tools. These products are one of the most significant recent innovations in the development of the ETF market.”