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STOXX, the leading European index provider, has licensed the Dow Jones EURO STOXX 50 Short, Dow Jones STOXX Global Select Dividend 100 and Dow Jones EURO STOXX Select Dividend 30 indexes to Deutsche Bank to underlie three exchange-traded funds (ETFs). The ETFs will begin trading tomorrow at Deutsche Börse, Frankfurt.
This is the first time that the Dow Jones EURO STOXX 50 Short and the Dow Jones STOXX Global Select Dividend 100 indexes have been licensed to serve as the basis for ETFs.
“These indexes represent the next generation of indexes that enable investors to further diversify their portfolios with sophisticated investment strategies and alternative weighting schemes,” said Lars Hamich, managing director STOXX Ltd. “The Dow Jones EURO STOXX 50 Short Index is an ideal tool to enhance market returns in bear markets. Both the Dow Jones STOXX Global Select Dividend 100 Index and Dow Jones EURO STOXX Select Dividend 30 Index follow a unique methodology weighted by dividend yield instead of market capitalization and offer a very attractive risk/return profile.”
“With the ETF on the DJ EURO STOXX 50 SHORT Index, Deutsche Bank for the first time offers investors in Germany the possibility to participate via an ETF 1:1 on falling markets. Hence investors will be now able to bet on falling markets or hedge entire portfolios without operating through derivatives,” said Thorsten Michalik, Head of Exchange Traded Funds for Deutsche Bank.
Launched in September 2006, the Dow Jones EURO STOXX 50 Short Index is linked to the performance of the Dow Jones EURO STOXX 50 Index in an inverse way - a positive development of the Dow Jones EURO STOXX 50 Index results in a negative change of the same amplitude in the Dow Jones EURO STOXX 50 Short Index and vice versa. That means if the underlying Dow Jones EURO STOXX 50 Index is down 2%, the Dow Jones EURO STOXX 50 Short Index is up 2% plus interest earned on the investment, and vice versa.
The Dow Jones STOXX Global Select Dividend 100 Index comprises the 100 highest dividend paying stocks worldwide and the Dow Jones EURO STOXX Select Dividend 30 Index consists of the 30 highest dividend paying companies in the euro zone are part of the Dow Jones and Dow Jones STOXX Select Dividend Index series, which includes the Dow Jones STOXX Select Dividend 30 Index, Dow Jones STOXX NORDIC Select Dividend 20 Index, Dow Jones STOXX EU Enlarged Select Dividend 15 Index, Dow Jones STOXX Americas Select Dividend 40 Index, Dow Jones STOXX Asia/Pacific Select Dividend 30 Index, Dow Jones Select Dividend Indexes for Asia, Asia/Pacific, Australia, Canada, EPAC, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, the U.K. and the U.S., as well as the Dow Jones SWX Select Dividend 20 Index.
Since their inception on December 31, 1998, the Dow Jones STOXX Global Select Dividend 100 Index has had an annualized return of 14,65%and the Dow Jones EURO STOXX Select Dividend 30 Index has returned 16,41%.
Historical data for the Dow Jones EURO STOXX 50 Short Index is available back to December 31, 1991. For the Dow Jones STOXX Global Select Dividend 100 Index and Dow Jones EURO STOXX Select Dividend 30 Index, historical data is available back to December 31, 1998. Further information on the Dow Jones STOXX Indexes is available at www.stoxx.com.
