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Amsterdam, 30 June 2009 - 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.”
For media enquiries, please contact: ETF Securities Laura Stevens Tel: +44 (0) 20 7448 4351 Email: laura.stevens@etfsecurities.com
Notes to Editors:
The two new ETFs tracking double leveraged (2x) and double short (-2x) European equity indices available to Dutch investors are:
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NYSE Euronext |
LSE |
TER |
UCITS III |
| ETFS Dow Jones EURO STOXX 50 Double Short (2x) Fund |
SEU2 |
SEU2 |
0.60% |
Yes |
| ETFS Dow Jones EURO STOXX 50 Leveraged (2x) Fund |
LEU2 |
LEU2 |
0.40% |
Yes |
| ETFS CAC 40 2x Short Fund |
FRS2 |
FRS2 |
0.60% |
Yes |
| ETFS CAC 40 2x Long Fund |
FRL2 |
FRL2 |
0.50% |
Yes |
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| Risk warning: Due to the compounding of daily returns, returns measured over periods longer than one day may differ from twice the underlying index return over that longer period. ETFs tracking double short & leveraged equity indices are only suitable for sophisticated investors who understand leverage, compounded daily returns and are willing to magnify potential losses.
Please see the Prospectus for a more detailed explanation and a more complete list of risks, available at www.etfsecurities.com
About ETF Securities: ETF Securities is a provider of Exchange Traded Commodities (ETCs) and 3rd generation Exchange Traded Funds (ETFs). The management of ETF Securities pioneered the development of ETCs, with the world's first listing of an ETC, Gold Bullion Securities in Australia and London in 2003 and then the world's first entire ETC platform which was listed on the London Stock Exchange in September 2006. ETF Securities now offers more than 140 Exchange Traded Products (ETPs) with $12 billion in assets. The ETPs provide investors with a wide variety of investment strategies, with ETPs offering resource equities, physical, long, forward, leveraged and short exposure to all commodity sectors. ETPs are simple to access as they are traded in four currencies (EUR, USD, GBP and AUD) and listed on seven major exchanges globally including the London Stock Exchange, NYSE-Euronext Paris, NYSE-Euronext Amsterdam, Deutsche Börse, Borsa Italiana, the Australian Securities Exchange and the Irish Stock Exchange.
To learn more about ETF Securities go to: www.etfsecurities.com
About NYSE Euronext NYSE Euronext (NYX) is the world’s most diverse exchange group, offering a broad and growing array of financial products and services in Europe and the United States that include cash equities, futures, options, exchange-traded products, bonds, market data, and commercial technology solutions. With over 8,000 listed issues globally, NYSE Euronext's equities markets -- the New York Stock Exchange, Euronext, NYSE Arca, and NYSE Amex -- represent nearly 40% of the world's cash equities trading volume, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, the leading European derivatives business and the world’s second largest derivatives business by value of trading. NYSE Euronext offers comprehensive global commercial technology, connectivity, and market data products and services through its innovative trading solutions unit, NYSE Technologies. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit: www.nyx.com.
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