db x-trackers expands its offer on iTraxx indices

Borsa Italiana welcomes on the Open-end Index Funds - class 1 segment of the ETFplus market 4 new harmonized ETFS issued by the Luxembourg SICAV "Db x-trackers II" (Deutsche Bank AG group) whose goal is to track the performance of the iTraxx indices promoted by the International Index Company (IIC) and calculated as well as published by Deutsche Boerse. Two ETFs refere to short financial iTraxx indices and two are on long financial iTraxx indices.

The iTraxx short indices reflect a short credit position i.e. buying protection against credit risks related to the reference entities. They therefore replicate the behaviour of a fictitious portfolio that sells one iTraxx CDS contracts and invests the remaining notional in money market instrument linked to the EONIA rate. The index reflects a protection buyer position therefore pays a coupon on quarterly basis.

The iTraxx long indices reflect a long credit position i.e. selling protection against credit risks related to the reference entities. They therefore replicate the behaviour of a fictitious portfolio that buy one iTraxx CDS contracts and invest the remaining notional in money market instrument linked to the EONIA rate. The index reflects a protection seller position therefore receives a coupon on quarterly basis.

Here below you can find a short description of the reference entities for each iTraxx financial index:

iTraxx Europe Senior Financials 5-year TOTAL RETURN and iTraxx Europe Senior Financials 5-year Short TOTAL RETURN INDEX: The above indices refer to the senior debt of 25 European financial institutions.

iTraxx Europe Subordinated Financials 5-year TOTAL RETURN INDEX e iTraxx Europe Subordinate Financials 5-year Short TOTAL RETURN INDEX: The above indices refer to the subordinated debt of 25 European financial institutions.

The total annual commission is equal to:

- db x-trackers II iTraxx Europe Senior Financials 5-year TOTAL RETURN INDEX ETF e db x-trackers II iTraxx Europe Senior Financials 5-year Short TOTAL RETURN INDEX ETF: 0.18%

- db x-trackers II iTraxx Europe Subordinated Financials 5-year TOTAL RETURN INDEX ETF e db x-trackers II iTraxx Europe Subordinated Financials 5-year Short TOTAL RETURN INDEX ETF: 0.21%

Please download the relevant public notice VISUALIZZA PDF

Download the Issuer notice VIEW PDF