(XSDX) Xtrackers ShortDAX Daily - Ratings and Ratios

The Xtrackers ShortDAX Daily Swap UCITS ETF 1C CHF (SW:XSDX) is a trading-focused leveraged/inverse equity ETF designed to provide daily inverse exposure to the DAX index. It utilizes a swap-based replication method to achieve its investment objective, making it suitable for short-term tactical bets against the German equity market. The fund is listed on the Swiss exchange and is denominated in Swiss Francs (CHF), offering Swiss investors a locally listed product with reduced currency risk.

From a technical standpoint, the ETF currently trades at 9.26 CHF, below its 20-day SMA of 9.59 and 50-day SMA of 10.04, indicating recent bearish momentum. The 200-day SMA stands at 10.92, further highlighting the downtrend. The Average True Range (ATR) of 0.07 reflects relatively low volatility, suggesting stable price movements. Average daily volume over the past 20 days is 1515, indicating moderate liquidity for an inverse ETF.

Fundamentally, the ETF manages assets under management (AUM) of 193.15M CHF, demonstrating investor interest in shorting the DAX. As a swap-based ETF, it is exposed to counterparty risk, though DWS (the issuer) typically maintains high credit quality for its counterparties. The fund’s tracking difference is tightly managed, ensuring close alignment with the inverse performance of the DAX.

3-Month Forecast: Based on the current technical setup, the ETF is likely to face continued headwinds as the DAX remains in a downtrend. The 20-day and 50-day SMAs are below the 200-day SMA, signaling bearish momentum. However, the low ATR suggests volatility will remain subdued, limiting sharp price swings. From a fundamental perspective, elevated AUM indicates strong investor demand for shorting the DAX, which could support the ETF’s liquidity and tracking efficiency. Overall, expect the ETF to maintain its inverse correlation with the DAX, with price movements closely mirroring the index’s performance.