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STOXX Ltd., the leading European index provider, has licensed 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 Börse, 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,” said Werner Bürki, chairman of the STOXX Supervisory Board. “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.”
Launched on October 2, 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 March 14, 2008, the Dow Jones STOXX 600 Banks Short Index has a return of 41.43% since its introduction on October 2, 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 December 31, 19911
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 licensing 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.
Further information on the Dow Jones STOXX 600 Supersector Short Indexes can be found at www.stoxx.com.
1 The Dow Jones STOXX 600 Supersector Short Indexes were first published on October 2, 2007. All estimated daily historical closing prices prior to that date are based on back-testing, i.e. calculations of how the index might have performed in the past if it had existed. Back-tested performance information is purely hypothetical and is solely for informational purposes. It does not represent actual performance, and past performance is not indicative of future results.
