Tech Sector Index is Top Performer in 2017, as Options on Ten Select Sector Indexes Are Planned

One of the most frequent types of questions I receive from investors involves the topic of year-to-date performance.  Many investors are very interested in tracking how indexes have performed in the current year.

As shown in the two charts below, of the ten S&P Select Sector indexes, the top and bottom performers in terms of price index returns in 2017 (through November 7) were the S&P Technology Select Sector Index (IXT), which was up 32%, and the S&P Energy Select Sector Index (IXE), which was down 6%.

HISTORIC VOLATILITY IN 2017

So far in 2017, the averages of the daily 20-trading day historic volatilities (through September 7) were:

  • 13.4 for the S&P Technology Select Sector Index (IXT);
  • 9.8 for the S&P Energy Select Sector Index (IXE);
  • 6.8 for the S&P 500 Index (SPX); and
  • 3.2 for the Cboe S&P 500 PutWrite Index (PUT), an index that sells cash-secured SPX put options.

 PLANS FOR OPTIONS ON SELECT SECTOR INDICES

 Cboe Global Markets has announced plans to expand its suite of product offerings tied to S&P Dow Jones Indices with the planned launch of options on the ten S&P Select Sector Indices that comprise the S&P 500 Index, a key benchmark of the U.S. equities market.

  • Options will be available on 10 sectors that comprise the S&P 500, pending regulatory approval.
  • The new options are expected to hold particular market appeal for European investors interested in targeted exposure within key U.S. equity benchmarks.
  • Further expands Cboe’s successful suite of products tied to S&P Dow Jones Indices, with trading and settlement features similar to Cboe’s S&P 500 options (SPX).

 WEIGHTINGS FOR S&P SELECT SECTOR INDICES

The S&P Technology Select Sector Index (IXT) has the largest weighting of all the ten S&P Select Sector indexes.

EUROPEAN INVESTORs, UCITS, AND CASH-SETTLED INDEX OPTIONS

Cboe Select Sector Index options are designed to potentially be problem-solvers for European asset managers who want exposure to these U.S. index sectors, but cannot hold physical delivery exchange-traded product (ETP) options in their funds because of EU regulations around UCITS (Undertakings for the Collective Investment of Transferable Securities). The options on the Select Sector Indexes are designed to provide simple, straightforward market access to these key U.S. equity sectors for European investors.

MORE INFORMATION

 For more information on the planned options on S&P Select Sector Indices, including links to more than 100 price charts, and a Fact Sheet with key options specifications, please visit www.cboe.com/Sectors.

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An October 17 press release introduced a new name , “Cboe Global Markets, Inc. … identity and mission at the Futures Industry Association (FIA) Expo 2017 conference, currently taking place in Chicago.  The changes were made to better reflect the evolving nature and spirit of the company and follows the acquisition of Bats Global Markets […]

Weekend Review of VIX Futures and Options – 10/15/2017

On a week over week basis VIX hardly budged, but we did have a couple of days with closes over 10.00 both Monday and Tuesday.  In fact, we would have had a double digit VIX highs each day if it weren’t for Friday’s price action falling short by 0.02.  The curve moved lower than VIX […]

Weekend Review of Volatility Indexes and ETPs – 10/15/2017

There are lots of articles floating around discussing the lack of volatility in the markets along with the low level of VIX.  It’s reaching a point where we don’t have much else to say and are just waiting for a change of scenery.  With all that going on, the four volatility indexes based on SPX […]

Four Facts to Help Address the Issue – Is the VIX “Low” This Year?

In the past year a number of news reporters and others have asked if the CBOE Volatility Index® (VIX®) was at an unusually “low” level in light of all the worldwide geopolitical uncertainties. The average daily closing levels for the VIX Index are 19.4 since January 1990, but only 12.8 since June 2016. At the […]

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