Today, as in the past, it’s cheaper to replicate the S&P 500 with futures than with exchange-traded funds (ETFs).
Updated for 2015, The Big Picture: A Cost Comparison of Futures and ETFs examines the all-in cost of replicating the S&P 500 total return via equity index futures and ETFs across a variety of use cases.
Read the updated report, and discover the cost efficiency of E-mini S&P 500 futures – the preferred tool for replicating the S&P 500 total return.
Not sure what tools are right for managing S&P 500 exposure?
CME’s E-mini S&P 500 futures:
"Our clients look to us to find cost effective and flexible ways to manage portfolio exposure needs on a daily basis. For the vast majority of our clients, we have found that futures may provide them the greatest flexibility to fulfill short-term risk management and performance enhancement goals such as cash equitization and securitization, portfolio rebalancing, currency hedging and transition management."
— Jack Hansen, Chief Investment Officer, Parametric -Minneapolis Investment Center
"With S&P 500 futures, investors receive the total return of the S&P 500 index less a money market rate-based funding cost, yet are only required to pay a small initial margin up front - in sharp contrast to the capital commitment plus fees required to own the S&P 500 via an ETF. This allows innovative equity investors, such as PIMCO, an opportunity to outperform the equity market simply by seeking a return on the remaining capital in excess of money market rates."
— Sabrina Callin, Managing Director and StocksPLUS product manager, PIMCO