NASDAQ OMX Stockholm AB, part of the NASDAQ OMX Group (NASDAQ:NDAQ), today starts trading in two new exchange traded funds (ETFs), XACT Europe Bull 2 and XACT Europe Bear 2.
The two ETFs issued by XACT Fonder are based on the Dow Jones EURO STOXX 50 Index, which reflects the performance of the 50 largest shares in Europe.
XACT Europe Bull 2 and XACT Europe Bear 2 are leveraged exchange traded funds that offer twice the return of the daily change in the underlying EURO STOXX 50 Index. Hence, for XACT Europe Bull 2, which has a positive exposure against EURO STOXX 50, a daily index increase of 1% means an increase in value of 2%. For XACT Europe Bear 2, which has a negative exposure against EURO STOXX 50, a 1% a daily index decrease generates a 2% value return. The leverage increases the potential return but also the risk level.
Jenny Rosberg, Deputy CEO at NASDAQ OMX Nordic said, "These two new ETFs from XACT Fonder will make a great addition to Nordic investors looking for exposure in European blue chip shares. In 2009 we have seen an increased interest in both listing and trading of ETF products, proving that this is a market with great growth potential."