FTSE Short and Leveraged Indices - 16 December 2008
The new FTSE 100 and FTSE 250 short and leveraged indices enable money managers to exploit the volatility in the UK market by allowing investors to go short the market or gear up, and will serve as the basis for ETFs and other index-linked financial products.
The new indices are an extension of our range of investment strategy indices, designed to help clients develop strategic investment tools that provide them with alpha returns relative to a standard market cap-weighted benchmark. They represent an active management strategy wrapped in an index with the advantages of passive management: high capacity, transparency and easy implementation.
The new indices are:
- FTSE 100 Short Index (with -1 leverage)
- FTSE 250 Short Index (with -1 leverage)
- FTSE 100 Leveraged (leveraged with x2 gearing)
- FTSE 250 Leveraged (leveraged with x2 gearing)
- FTSE 100 Super Leveraged (leveraged with x3 gearing)
- FTSE 250 Super Leveraged (leveraged with x3 gearing)
- FTSE 100 Ultra Leveraged (leveraged with x4 gearing)
- FTSE 250 Ultra Leveraged (leveraged with x4 gearing)
Both sets of indices take into account the geared
returns and the interest income element of running
the short position or the cost of financing the
leveraged positions.
More information can be found at www.ftse.com/short_leveraged
