db x-trackers, Deutsche Bank’s ETF business, today listed the first three short Markit iTraxx ETFs on Deutsche Börse as part of its Exchange Traded Fund (ETF) platform.
The three new ETFs, previously only available for purchase over the counter*, are based on credit indices developed by Markit. The three indices are:
• Markit iTraxx® Europe 5-year Short TOTAL RETURN INDEX
• Markit iTraxx® Europe HiVol 5-year Short TOTAL RETURN INDEX
• Markit iTraxx® Europe Crossover 5-year Short TOTAL RETURN INDEX
The launch of these three UCITS III funds will allow European clients to buy credit protection in an ETF format, via an exchange for the first time. It is expected the Markit iTraxx ETFs will be popular with corporates, insurance companies, banks and asset managers looking for protection from market turbulence in a non derivative format.
Short Markit iTraxx® indices measure the return for a credit protection buyer holding the most recent on-the-run five year Markit iTraxx® credit default swap. The indices are calculated on a total return basis which means that they accrue the residual investment not dedicated to credit exposure at the EONIA** interest rate.
Source:ETFWorld.co.uk – db x-tracker