Legal & General DAX Daily 2x Short UCITS ETF

The Legal & General DAX Daily 2x Short UCITS ETF is a leveraged exchange-traded fund designed to provide investors with twice the inverse of the daily performance of Germany’s DAX Index. This ETF achieves its objective through a synthetic replication strategy, primarily using derivatives such as swaps rather than holding the underlying stocks directly. Its approach means that for every 1% decline in the DAX on a single day, the ETF is structured to rise by approximately 2%, and conversely, a 1% daily increase in the DAX would result in about a 2% fall in the ETF’s value. The fund accumulates dividends, reinvesting them rather than distributing payouts to investors. Targeting short-term traders and professionals, this ETF supports strategies that benefit from declines in Germany’s leading large-cap stocks, which include prominent sectors such as industrials, financials, technology, and consumer goods. The fund’s total expense ratio is 0.60% per annum. Launched in June 2009 and domiciled in Ireland, it primarily serves as a tactical instrument for hedging or speculative purposes, rather than as a long-term holding due to the compounding effects inherent in leveraged and inverse ETFs.