Summary
Reaping the benefits of falling DAX® prices With the development of ShortDAX®, Deutsche Börse Group offers investors an index that allows them to participate directly in falling share prices. The performance of ShortDAX® is inversely proportional to that of the DAX®. The index is set up in a completely transparent and simple way. ShortDAX® mirrors the movements of the DAX® index in the opposite direction, i.e. when DAX® rises by five percent, the ShortDAX® index falls by five percent, and vice versa. In addition to inverse DAX® share price performance, the index also contains interest payments resulting from the investment strategy in twice the amount of the overnight rate. Interest accrues in the same amount for the investment volume as well as for the funds received from short-selling. ShortDAX® is therefore an attractive investment not only in falling but also in sideways markets and periods where market trends are unclear. Deutsche Börse offers the ShortDAX® x2, ShortDAX® x3, ShortDAX® x4, ShortDAX® x5, ShortDAX® x6, ShortDAX® x7, ShortDAX® x8 indices for investments in falling prices for strategic investors. The "x" in the name represents the respective leverage factor: ShortDAX® x2 means double the negative daily performance of the DAX®; ShortDAX® x4 means four times the negative daily performance of the DAX®. If, for example, the DAX® index rises by five percent, ShortDAX® x2 falls by ten percent, and if DAX® falls by five percent, the ShortDAX® x2 index rises by ten percent. With short indices, investors who expect negative performance from certain markets or regions have strategic index products which allow them to transfer a downtrend into a profitable investment strategy. All leveraged ShortDAX® Indices have a protective mechanism to prevent a total loss. If an index loses more than a defined percentage between two rebalancing dates, the leverage effect will be adjusted ad-hoc and the calculation continued based on the DAX® level prior to that point in time. The ShortDAX® Indices provide investors with a simple method of participating to a proportionately greater extent in market movements. ShortDAX®, ShortDAX® x3, ShortDAX® x4, ShortDAX® x5, ShortDAX® x6, ShortDAX® x7 and ShortDAX® x8 are calculated as daily indices, ShortDAX® x2 is available as daily and monthly index.
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