SGAM Alternative Investments has launched an ETF in Italy based on the Dow Jones Euro Stoxx 50 index, one of the most traded on the Borsa Italiana.

Listed on the “ETF strutturati” segment, SGAM ETF XBear Dow Jones Euro Stoxx 50 offers a leveraged reverse exposure, up to 200 per cent, to the Dow Jones Euro Stoxx 50 index, enhanced by a monetary return. It is the first such ETF on the Italian market.

It is intended for investors who do not wish to use futures to set up a bear strategy and can also be used to hedge a portfolio or to implement a long-short arbitration strategy between an equity portfolio and the Dow Jones Euro Stoxx 50 index, in order to extract only the out-performance from the portfolio, independently of the direction of the market.

The reverse exposure to the index is variable and can be modified each quarter according to the market fundamental and volatility environment. It is set by a management committee composed of fund managers and analysts from SGAM AI. The ETF performance will be enhanced by a money market return.

SGAM AI introduced its first ETFs in Italy in February 2008 and now has four  ETFs listed on the “ETF strutturati” segment.