S&P Dow Jones launches futures index

S&P Dow Jones launches futures index

Investors will soon have an alternative way to measure Australian equities with the launch of a new futures index.


The index tracks the returns generated from an investment in the front-month S&P/ASX 200 index futures, calculating both excess return and total return, a statement issued by S&P Dow Jones Indices said.

S&P Dow Jones Indices director of global equity indices Michael Orzano said: “As understanding and use of passive investment continues to take hold in Australia, we are seeing increasing demand from investors for more sophisticated index solutions.”

“We are excited to introduce the S&P/ASX 200 Futures Index, which provides a highly efficient means to incorporate Australian equities into an index-based investment strategy.”

ASX Limited senior manager of business development, Gregory Stephens, said ASX is “excited” about the opportunities the index will bring for investors.

“The creation of the S&P/ASX 200 Futures Index will expand the range of investment tools available for investors and other participants, and add to the confidence and sophistication of the Australian financial marketplace,” Mr Stephens said.

The index is designed with a provision to replace the index futures contract as it approaches maturity. The replacement will occur over a one-day rolling period every quarter, one day prior to the expiration of the futures contract, the statement said. 

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