(DBPD) Xtrackers ShortDAX x2 Daily - Ratings and Ratios

The Xtrackers ShortDAX x2 Daily Swap UCITS ETF1C (XETRA:DBPD) is a leveraged inverse equity ETF that allows investors to profit from a decline in the DAX index. It achieves this by providing twice the inverse daily return of the DAX index, making it a high-risk, high-reward investment vehicle.

From a technical analysis perspective, the ETFs current price of 0.56 is below its 20-day, 50-day, and 200-day simple moving averages (SMA20: 0.61, SMA50: 0.63, SMA200: 0.77), indicating a bearish trend. The Average True Range (ATR) of 0.03, or 5.84% of the current price, suggests a relatively high level of volatility. Given the current price is near the 52-week low of 0.55, a potential support level, and considering the ETFs purpose is to inversely track the DAX index, we can infer that the DAX index has likely been rising. A forecast based on the technical data suggests that if the DAX continues to rise, DBPD may continue to decline, potentially testing its 52-week low.

Fundamentally, the ETF has Assets Under Management (AUM) of 132.01M EUR, indicating a moderate level of investor interest. Leveraged and inverse ETFs like DBPD are typically used for short-term trading strategies rather than long-term investments. They are designed to meet their investment objectives on a daily basis, and their performance over longer periods can deviate significantly from their stated objectives due to compounding effects.

Combining both technical and fundamental analysis, a potential forecast is that if the DAX index continues its upward trend, DBPD may see further decline. However, if theres a significant downturn in the DAX, DBPD could potentially rise. Investors should be cautious and closely monitor the DAX index, as well as the ETFs technical indicators, to make informed decisions. The high volatility and leveraged nature of DBPD make it unsuitable for risk-averse investors or those with a long-term investment horizon.