Category: Money tips Release Date: 2006-02-23
Stock index futures knowledge (5)
Although the stock index futures and index-based ETF is a tool for products, but there is a big difference between the two, In general, mainly reflected in the following areas: differences between the two major
First, the stock index futures is the future value to the form of margin trading, has important leverage. Designed according to current rules, the future of the Shanghai and Shenzhen 300 index futures leverage ratio of 10 times, funding application efficiency higher, while the ETF is currently based on full index of spot cash transactions, no leverage.
Second, the minimum transaction amount different. The minimum margin for each stock index futures contracts, at least in million yuan, ETF trading unit of the smallest single-handedly, corresponding to the minimum amount is 100 yuan or so.
Third, the sale of stock index futures do not include stock index's dividend ETF holding period, the dividends of the underlying index constituent stocks owned by investor-owned.
Fourth, the stock index futures are usually determined by duration, date of maturity needed to track the index, need to re-buy a new stock index future contracts, while the ETF products have no duration.
Fifth, as investors anticipated the broad market is different from stock index futures and index trend is not necessarily exactly the same, there may be a range of discount and premium, discount premium depends on the amount of arbitrage funds and arbitrage efficiency, while the full passive tracking index ETF net trends and generally maintain a high index of consistency.
ETF can be used as stock hedge
Through the above comparison, we can see that, although with the instrumental-based index products, stock index futures and ETF characteristics of different products for different types of investor demand. At the same time, from abroad, mature development of capital markets experience, because of the risk management needs, the index spot and futures products has an important interaction between products and complementary relationship.
Industry insiders estimate that, with the introduction of domestic stock index futures, stock index products, the relevant transaction will also influence the level of activity. Taking into account the current design of the Shanghai and Shenzhen 300 index futures, although there is no cross-market ETF, as a direct spot hedging tool, but not difficult to find through research, Shenzhen 100, and the combination of SSE 50 Index and the Shanghai and Shenzhen 300 Index has been the relevance of Up to 99.4%, two index-linked ETF products currently has sufficient liquidity and relatively perfect arbitrage mechanism, and their combinations are also important in Shanghai and Shenzhen 300 stock index futures hedging instruments. (Yu-chun Min)
