CME Group now offers E-mini S&P 500 Equal Weight futures, providing another way for market participants to diversify their equity trading strategies.
Comparing the S&P 500 Index and the S&P 500 Equal Weight Index
The S&P 500 Index is a key indicator of the health of the U.S. stock market. Each company in the index is weighted based on their market capitalization, which means the index’s performance is often driven by the largest names in the index.
In the S&P 500 Equal Weight Index, each stock is assigned an equal weight, meaning smaller companies have the same impact as larger ones. This also means risk is spread equally among all constituents instead of being more concentrated in a few large-cap stocks.
Market participants can use E-mini S&P 500 Equal Weight futures to express a view or hedge risk on the U.S. large-cap market, while capturing equal exposure to both the smaller and larger stocks in the index.
S&P 500 Equal Weight futures product information
The E-mini S&P 500 Equal Weight futures contract multiplier is twenty dollars times the S&P 500 Equal Weight Index. The tick increment is half an index point, which makes a one-tick move equivalent to ten dollars.
Contracts are listed on the customary U.S. Equity Index futures cycle. There are five concurrent futures that expire against the opening index value on the third Friday of March, June, September and December.
Final settlement value is based on the Special Opening Quotation (SOQ) on the third Friday of the contract month.
E-mini S&P 500 Equal Weight futures are available to trade on CME Globex, Sunday through Friday, nearly 24 hours per day. They are also BTIC and block eligible.
E-mini S&P 500 Equal Weight futures – a new way for market participants to manage their exposure to the U.S. equity market.
