Tag Archives: Derivatives
Examining the Dividend Risk Premium
How do you measure the dividend risk premium on the S&P 500 and why does it make sense to track with an index? S&P DJI’s Michael Mell takes a custom look at indexing dividend futures with Metaurus Advisors’ Rick Silva, and Compass Point Financial’s Andrew Jones.
VIX Back to Normal? Not Really
The U.S. equities market had a wild start in 2020. Following the March 2020 sell-off, the S&P 500® posted its largest monthly gain (12.8%) since 1987. Meanwhile, VIX® went from its long-term median to an all-time high within a month before it settled around 30. One thing that has been debated lately is whether VIX,…
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The Use of Index Derivatives in Portfolio Management
Index derivatives exist for all asset classes, and over time their use has grown exponentially for a variety of purposes. Still, many myths abound that their chief function is for speculative activity. The ability to leverage by investing a small amount to gain exposure to a much larger investment is the key benefit of index…
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