db x-trackers II launches ETFs on iTraxx indices

Borsa Italiana welcomes on the Open-end Index Funds - class 1 segment of the ETFplus market 6 new 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. Three ETFs refere to short iTraxx indices and three are on long 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 index:

ITRAXX EUROPE 5-YEAR TR and ITRAXX EUROPE 5-YEAR SHORT TR:
The above indices refer to 125 investment grade rated European entities (10 Autos, 30 Consumers, 20 Energy, 20 Industrials, 20 Telecommunication, 25 financials).           

ITRAXX HiVol 5-YEAR TR  and ITRAXX HiVol 5-YEAR SHORT TR
The above indices refer to the 30 entities with the widest 5-year CDS spread from the “iTraxx Europe non-financials” which is comprised the 100 non-financial entities from the iTraxx Europe index.

ITRAXX CROSSOVER 5-YEAR TR and ITRAXX CROSSOVER 5-YEAR SHORT TR
The above indices refer to the 50 European entities with more than 100 € million publicly traded debt and rated BBB-/Baa3/BBB- (Fitch/Moody's/S&P).

The entities in the iTraxx indices are equally weighted.

The total annual commission is equal to:

DB X-TRACKERS II ITRAXX EUROPE 5-YEAR SHORT ETF and DB X-TRACKERS II ITRAXX EUROPE 5-YEAR ETF - 0.18%

DB X-TRACKERS II ITRAXX HiVol 5-YEAR SHORT ETF and DB X-TRACKERS II ITRAXX HiVol 5-YEAR ETF - 0.21%

DB X-TRACKERS II ITRAXX CROSSOVER 5-YEAR SHORT ETF and DB X-TRACKERS II ITRAXX CROSSOVER 5-YEAR ETF - 0.24%

Please download the relevant public notice: VISUALIZZA PDF