SGAM Alternative Investments (SGAM AI) announces the launch on Euronext Paris of two ETFs offering a reverse exposure to the variation of the Dow Jones EURO STOXX 50® (“Bear strategy”). The two ETFs were admitted for listing yesterday on the active ETFs compartment of Euronext’s NextTrack segment, and are the first “Bear” ETFs to be launched on the flagship index of the eurozone.
- SGAM ETF Bear DJ EURO STOXX 50 offers a reverse exposure, up to 100%, to the Dow Jones EURO STOXX 50 Total Return index, enhanced by a monetary return.
- SGAM ETF XBear DJ EURO STOXX 50 offers a reverse exposure, up to 200%, to the Dow Jones EURO STOXX 50 Total Return index, enhanced by a monetary return.
The reverse exposure to the index is variable and can be modified each quarter according to the upcoming trend and volatility forecasts of a Management Committee composed of fund managers and analysts from SGAM AI. At the launch date, the reverse exposure to the index is fixed at 80% for SGAM ETF Bear DJ EURO STOXX 50 and at 180% for SGAM ETF XBear DJ EURO STOXX 50.
The ETF performance will be enhanced by a money market return which can reach twice the EONIA no-risk interest rate for SGAM ETF Bear, and 3 times EONIA for SGAM ETF XBear.
These ETFs are intended for institutional investors who do not wish to use futures to set up a bear strategy. They can also be used to hedge a portfolio or to implement a long-short arbitration strategy between an equity portfolio and the Dow Jones EURO STOXX 50 index, in order to only extract the outperformance from the portfolio, independent of the direction of the market.
The SGAM ETF Bear and XBear make it possible to invest in a falling market through a coordinated fund (UCITS III) and with reduced costs as the funds do not charge any entry or exit fees.
ETFs (Exchanged Traded Funds) are real-time listed funds. They are as easy to trade as shares, their exposure to the index is known at all times and their net asset value is calculated and communicated continuously.
SGAM AI’s structured exchange-traded funds combine the benefits of structured management with the transparency of continuously quoted ETFs. Based on an actively managed exposure to the index, they provide:- either a leverage (“Leveraged” range),
- a ‘cushion effect’ and a partial capital protection, using the “portfolio insurance” technique (the “Flexible” range),
- or a reverse exposure to the index (“Bear” or “XBear” range).
They also offer access to alternative investment classes with an exposure to the index of 100% (for example Private Equity).
