The Zhitong Finance App learned that CME Group (CME Group), a global derivatives market, recently announced that it will launch E-mini stock factor futures on September 21 to further expand its stock product line. The new product is yet to be reviewed.
Stock factors are performance indicators used to measure specific market characteristics. They can help investors seize growth opportunities, respond to market fluctuations, and improve the diversification level of investment portfolios. The new E-mini futures will be used to complement single-factor and multi-factor strategies, bringing greater capital efficiency to risk management and relative value trading.
These products include: E-mini S&P 500 Growth Index Futures; E-Mini S&P 500 Value Index Futures; E-Mini S&P 500 Quality Index Futures; E-Mini S&P 500 Momentum Index Futures; E-Mini S&P 500 Low Volatility Index Futures; E-Mini Dow Jones US Dividend 100 Index Futures.
“Market participants are increasingly turning to equity factors to allocate specific components of risk and build more targeted portfolios,” said Joseph Hickey, head of global equity products at CME. “Our E-mini stock factor futures will provide more flexibility in obtaining and managing exposure to specific factors, while also having the centralized liquidity, margin cancellation mechanism and smooth and convenient trading experience that clients rely on.”
“This reflects the strong partnership between S&P Dow Jones Indices and CME, and this product launch also reflects their shared commitment to providing transparent, relevant, and efficient indexing tools to the market. Through new futures linked to the S&P 500 factor, dividends, growth, and value benchmarks, market participants can more accurately express opinions, manage risk, and grasp important segments of the US stock market. The launch of this new product demonstrates our continued commitment to advancing the ecosystem of tradable index solutions,” said Robert Ross, chief commercial officer of S&P Dow Jones Indices.
“Invesco's Factor ETF series has changed the way investors structure their portfolios and manage risk, and we are delighted that CME will develop related futures derivatives around multiple ETFs that track our S&P Dow Jones Index Factor Strategy. With the collaborative development of futures products and related basic strategies, the entire ecosystem will become deeper and more resilient, and ultimately benefit investors,” said Pratik Doshi, head of ETF strategy at Invesco Stock Exchange.