Tag Archives: Trading Volumes
Green Pools: Evolving ESG Trading Ecosystems
Compared to the wide range of liquid, tradable instruments associated to more traditional benchmarks like the S&P 500®, the trading ecosystem of ESG-based investment products is still in its infancy. But, with the increased volume in listed futures linked to the S&P 500 ESG Index and S&P Europe 350® ESG Index, change is afoot. Of…
- Categories ESG
-
Other Tags
2022, Canada FA, clean energy, climate, ecosystem, equities, ESG, ETF, ETFs, futures, IET, Index Investment Strategy, liquidity, market efficiency, Net Zero, Option, options, passive management, S&P 500, S&P 500 ESG Index, S&P DJI ESG, S&P Europe 350 ESG, S&P Europe 350 ESG Index, Sherifa Issifu, Trading, U.S., U.S. Equities, US FA, volumes
- Categories
- ESG
- Other Tags
- 2022, Canada FA, clean energy, climate, ecosystem, equities, ESG, ETF, ETFs, futures, IET, Index Investment Strategy, liquidity, market efficiency, Net Zero, Option, options, passive management, S&P 500, S&P 500 ESG Index, S&P DJI ESG, S&P Europe 350 ESG, S&P Europe 350 ESG Index, Sherifa Issifu, Trading, U.S., U.S. Equities, US FA, volumes
The Gift of a Benevolent Providence
Suppose that I buy a popular exchange traded fund (ETF) tracking the S&P 500® today, leave it in my brokerage account for 20 years, and then sell it. What return should I expect? The answer, obviously, is that my return should reflect the movements in the S&P 500 (net of fees) over my 20-year holding…
- Categories Equities, S&P 500 & DJIA
- Other Tags
Illustrating the Value of Liquidity
Let’s suppose for a moment that you are given a choice between two hypothetical exchange traded funds (ETFs) tracking the same index. Fund A has an annual management fee of 0.4% while Fund B has an annual management fee of 0.1%. At first glance, Fund B seems like the better option: it offers similar performance…
- Categories Equities, Strategy, Uncategorized
- Other Tags
Mapping the S&P 500 Trading Ecosystem
A new paper published today provides a new perspective on the active usage of products linked to S&P DJI indices, and illustrates the network of liquidity that has developed around the S&P 500® and other popular benchmarks. “Active” and “passive” are colloquial terms, and it can be hard to distinguish one from the other at…
- Categories S&P 500 & DJIA, Strategy
- Other Tags
When to Get Active with Sectors
When do sectors matter, and what can you do about it? Sometimes the sector composition of an equity portfolio strongly affects its returns. At other times, single stock effects or overall market effects dominate. Sector-based products such as ETFs and futures have been around for decades, but recently they have attracted growing interest. Exhibit 1…
- Categories S&P 500 & DJIA, Strategy
- Other Tags
- Categories
- S&P 500 & DJIA, Strategy
- Other Tags