It will start to be disseminated in real time the first week of May.
Bolsas y Mercados Españoles (BME) has created a new tradeable index called …
IBEX 35® SHORT, which tracks the inverse performance of the IBEX 35® CON DIVIDENDOS (IBEX 35® Total return) index, which includes dividend payments. The real time calculation and dissemination of both indices will start the first week of May.
IBEX 35® CON DIVIDENDOS is a total return index, that is, it incorporates changes in share prices, dividend payments and other types of shareholder remuneration. The index thus reflects the effect these payments have on a portfolio that tracks IBEX 35® index.
The index’s constituents, calculation and adjustment criteria are the same as those used for the IBEX 35® index but it is also updated to incorporate the payment of ordinary dividends.
The IBEX 35® SHORT index tracks the daily changes in the IBEX 35® CON DIVIDENDOS in the opposite direction, that is, if on a trading session the return on IBEX 35® CON DIVIDENDOS is positive, the return on IBEX 35® SHORT on the same trading session will be negative in a similar proportion. However, the formula for the calculation of IBEX 35® SHORT incorporates a risk-free, fixed income investment component, which is why the performance of this index is not perfectly symmetrical with that of the IBEX 35® CON DIVIDENDOS.
The IBEX 35® SHORT index is meant to act as an underlying asset for such financial products as certificates or exchange-traded funds (ETFs). The index offers investors the opportunity to use these instruments to hedge potential losses derived from a bear market.
Today BME opens the process for the selection of financial entities willing to create ETFs on the IBEX 35® SHORT index.
Source: ETFWorld.co.uk – BME / Media Release
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