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Deutsche Börse launched two new indices. The new DAXplus® Minimum Variance Germany strategy index will further expand the company’s offering in the DAXplus index family. This strategy index is the world’s first tradable index based on the theory of portfolio selection.
The aim of the strategy is to develop a risk-optimized portfolio, which involves weighting in such a way that portfolio variance is minimized.
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. Shares with a weighting of 0 percent according to the variance analysis will not be included in the DAXplus Minimum Variance Germany.
Minimum Variance Germany is the eighth index in Deutsche Börse’s DAXplus strategy index family, which also comprises the DivDAX®, DAXplus Seasonal Strategy, DAXplus Export Strategy, DAXplus Covered Call, LevDAX and DAXplus Protective Put, and ShortDAX.
The new ÖkoDAX selection index tracks right now ten largest stocks from the renewable energies sector in terms of market capitalization. Like all Deutsche Börse’s indices, ÖkoDAX is based on a transparent set of rules; the composition is reviewed every quarter. All index constituents have equal weighting. Deutsche Bank issued an X-pert certificate on the ÖkoDAX (ISIN: DE000DB80EK0).
“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”, said Dr. Holger Wohlenberg, Managing Director Stock Market Business Development.
“The concept of ÖkoDAX is very convincing. 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 Börse”, said Nicolai Tietze, derivates expert of the x-markets team of Deutsche Bank.
Market Data & Analytics calculates and publishes more than 2,100 indices in total. Deutsche Börse thus ranks among the world’s major index providers. Market Data & Analytics also compiles, distributes, and markets independent capital market information, such as price data, trading statistics, and back office information for banks and financial institutions.
