Equity Index Sector futures
Manage sector exposure in liquid, capital-efficient futures format across E-mini S&P Select Sector, E-mini S&P Select Industry, Dow Jones Real Estate, E-mini Nasdaq Biotech, and PHLX Semiconductor Sector Index futures.
Get capital-efficient exposure
Enjoy potential margin offsets with other Equity Index futures, low tracking error, zero management fees, and actionable SOQ settlement at expiration.
Easily express your view
Go long or short sector exposure without the constraint of security-based or single-stock-based short sale regulations.
Use Sector futures for spreading, sector rotation, portfolio overlays, and cash equitization opportunities.
Explore Sector futures
Equity Index Sector futures are efficient tools you can use to increase or decrease exposure to particular segments or industries of the broader equity market. Learn about the key features of these contracts.
Potential tax advantages and margin offsets
- Tax treatment: Sector futures may be exempt from IRS Rule 871(m) transaction withholding. As Section 1256 contracts, these products also may qualify for 60/40 U.S. tax treatment rather than ordinary income tax.*
- Margin offsets: You may qualify for margin offsets with other CME Group contracts - and up to 70% offsets with E-mini S&P 500 futures. Combined with greater than 20x leverage and efficiency of working with a single clearinghouse, the potential savings can add up.
*Not intended as tax advice. Please consult your tax advisor and/or FCM for more information.
Multiple product applications
- Sector rotation: Use in sector rotation strategies to express sector-specific views within a portfolio or to execute relative value or under/over-weighting strategies against the S&P 500 Index.
- Spread trading: Capture spreading opportunities vs. constituent stocks of a sector index or the S&P 500 Index, or use to create a portfolio overlay to hedge unintended sector risk.
- Cash equitization: Use in cash equitization strategies to efficiently manage cash or gain cheap beta exposure when faced with periodic cash contributions and redemptions.
Sector futures products
View our suite of 19 Sector futures, designed for managing sector-related risk.
*Please consult your tax advisor and/or FCM for more information.
Flexible execution, greater liquidity access
In addition to the CME Globex electronic central limit order book, you have a choice of ways to find the liquidity you need to efficiently transact Sector futures orders of size.
Block trades are privately negotiated futures, options, or combination transactions that are permitted to be executed apart from the auction market.
Exchange for Physical (EFP) block trades allow market participants to sell stock and buy it back for future delivery by buying Single Stock futures (SSF), or by buying the stock and selling the SSF.
BTIC block trades
Basis Trade at Index Close (BTIC) block trades enable market participants to execute a transaction as a basis trade relative to the official close for the underlying index.
Derived block trades
A derived block is a block trade in which the price and quantity of the trade depends on hedging transactions in an eligible related market. Now available.
Equity Index tools for your trading strategy
Explore our industry-leading tools to gain insights that inform the way you trade.
Open Interest Profile Tool
Analyze open interest and open interest change patterns for each expiration within the selected product.
Other tools for the trade
Build your custom portfolio
Choose the contracts you want to follow and set alerts to stay informed. Subscribe to reports to see how events shape market activity and use our analytical tools to create trading strategies.
Equity Index futures insights
Dive into some of the many ways you can use Sector futures to achieve your objectives.
Managing sector rotation with derived blocks
See how derived blocks can provide greater liquidity and new opportunities for large-sized trading strategies when markets experience sector rotation.
Achieving Social Mandates with CME Equity Index Futures
Learn how trading a combination of E-mini S&P 500 index futures can synthesize investment strategies that restrict exposure to the energy sector.
Spread Trading Sector Index Futures
Learn about using Select Sector futures for spread trading in different market sectors.
Read how CME Group's suite of Select Sector futures can provide effective risk management and help identify opportunities beneath the benchmark levels.
Learn more about our products and how they help manage risk
The courses below can help you quickly understand the market for Equity Index sectors and start trading.
Contact an Equity Index expert
Connect with a member of our Equity Index products team for more information about Sector futures.