Stocks

Sustainable Investing with E-mini S&P 500 ESG Futures

E-mini S&P 500 ESG futures (ESG) provide futures traders with a more sustainable and environmentally conscious instrument than the traditional E-mini S&P 500. As sustainable investing continues to gain momentum, ESG futures provide traders with an alternative to the E-mini S&P 500 that aligns with their moral values.

Watch this video to learn more about E-mini S&P 500 ESG futures:

What is the ESG Index?

The S&P 500 ESG is a stock index constructed from the constituents of the S&P 500 index with a set of filters that governs eligibility. Companies included adhere to the Environmental, Social and Governance (ESG) standards. Filtering depends upon participation in certain industries, such as tobacco or controversial weapons, and possession of a low score in United Nations Global Compact (UNGC). Additionally, companies ranking within the lowest 25% of ESG scores are excluded.

While the idea of a sustainable version of the largest index futures market is enticing on its own, it’s important to know the key similarities and differences between ESG Futures and E-mini S&P 500 futures. Here are the E-mini S&P 500 ESG’s contract specifications.

E-mini S&P 500 ESG Index Futures Specifications

  • Product Code: ESG
  • Contract Size: $500 x S&P 500 ESG Index.
  • Minimum Price Fluctuation
  • Outright: 0.02 Index points, equal to $10.00 per contract.
  • Calendar spread: 0.01 Index points, equal to $5.00 per calendar spread.
  • BTIC: 0.01 Index Points, equal to $5.00 per contract
  • Cash settled

Visit the CME website a full list of contract specifications.

Versatility to manage positions

ESG futures offer flexible execution options, including Basis Trade at Index Close (BTIC) or block trades, offering multiple ways to find liquidity. ESG futures are subject to a 250 minimum block and BTIC block threshold.

Similarity to the S&P 500

You don’t have to forfeit the price performance of the S&P 500 index with ESG Futures. Over the last 5 years, the S&P ESG Index has tracked the S&P 500 Index within 0.74%. As sustainable investing continues to gain momentum, manage and integrate environmental, social, and governance exposure into your investments with E-mini S&P 500 ESG futures.

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