Société Générale Asset Management Alternative Investments has launched the world’s first leveraged ETF based on the DJ Eurostoxx50.
The product, which will be quoted on the ‘structured fund’ compartment of Euronext’s NextTrack in Paris, uses a CPPI mechanism to offer up to 200% exposure to the falls and gains in the European benchmark.
The leverage is achieved via a borrowing mechanism with the costs incorporated into the internal running of the fund.
According to Sgam’s Francois Millet the company decided to add another European index to its range of ETFs (it already has some linked to the FTSEurofirst80) because the Dow Jones index is the most widely used and the most tradable. He added that Sgam is working on other products based on the index.
The Ucits III-compliant fund will be available to tax-free Pea investments.
This product will appear shortly in Continuous Products (France).
