NYSE Euronext is expanding its range of strategy indices with the launch of six new products based on the CAC 40 index.
Three new leverage indices track the performance of a strategy that trebles to quintuples exposure to the CAC 40 index with the support of short-term financing. In a rising market, they enable investors to earn a daily return that amplifies that of the underlying index, minus the financing cost embedded in the strategy.
Three new short indices track the performance of a strategy that combines a treble to quintuple inverse exposure to the underlying index with the exposure to a risk-free money-market instrument. In a falling market, they enable investors to earn a positive daily return that is the inverse of the underlying index.
“The launch of these indices will enlarge our family of strategy indices, reflecting our commitment to providing investors with a wider choice of trading strategies, and issuers of products including ETFs, certificates, warrants and EMTNs with a selection of effective tools to meet their needs and keep pace with market developments,” says George Patterson, head of global index design, global index group at NYSE Euronext.
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