Bolsas y Mercados Españoles (BME) will start the calculation and real time dissemination …
of the new tradable indices IBEX 35® TOTAL RETURN and IBEX 35® SHORT as of May 13th.
IBEX 35® TOTAL RETURN 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® TOTAL RETURN in the opposite direction, that is, if on a trading session the return on IBEX 35® TOTAL RETURN 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® TOTAL RETURN.
BME has recently granted Lyxor International Asset Management a new licence to issue an Exchange Traded Fund (ETF) on the IBEX 35® SHORT.
Source: ETFWorld.co.uk – Bolsas y Mercados Españoles (BME)
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