Deutsche releases seven leveraged ETFs on LSE

Deutsche Bank has released seven daily two times leveraged ETFs on the London Stock Exchange (LSE), tracking short and long indices.

Three of the funds are daily leveraged short ETFs that deliver two times the daily inverse performance of the DAX, Eurostoxx 50 and S&P 500.

The remaining four ETFs track indices providing two times daily long exposure to the DAX, Eurostoxx 50, S&P 500 and FTSE 100.

The latest launch complements the 16 daily short equity ETFs, which return the inverse performance of the underlying indices without leverage.

Deutsche says the daily leveraged funds are suitable for sophisticated institutional investors, for use in short-term trading or hedging strategies, to react to intra-day market changes and to exploit any market rises or declines.

These funds can also serve as an efficient alternative to futures, swaps and contracts for difference, without requiring a margin account or derivatives agreements.

The bank says 15.9% of the overall ETF turnover in the US and 20.9% in Europe is attributed to short and leveraged funds.

Deutsche highlights daily leveraged funds do not deliver returns that are two times proportional or inversely symmetrical to the respective index for investment periods longer than one day, due to the daily compounding of returns.

The leveraged long range has all-in fees spanning 0.35% to 0.60%. The leveraged short offering has fees from 0.50% to 0.70%.