CME Group Launches Futures for S&P 500 ESG Index
October 03 2019 - 11:53AM
Dow Jones News
By Dieter Holger
CME Group Inc. (CME) said Thursday that it will launch futures
contracts for the S&P 500 ESG Index that will start trading on
Nov. 18, pending regulatory approval.
It will offer E-mini contracts for the index, which are
electronically traded and represent a fraction of the value of a
standard futures contract, CME said.
CME's new product aims to meet "the changing risk management
needs of our customers in an evolving global marketplace" and allow
investment decisions to align with personal or institutional
values, said Tim McCourt, global head of equity index and
alternative investment products at CME.
The S&P 500 ESG Index made its debut in April and seeks
performance within 1% of the S&P 500, but screens out companies
involved with tobacco or controversial weapons as well as companies
with an ESG score in the bottom 25% of the S&P 500 or a low
score as defined by the United Nations Global Compact principles
for responsible business.
As a result, around 154 of the S&P 500's members don't
appear in the index, including Facebook Inc. (FB), Boeing Co. (BA)
and Berkshire Hathaway Inc. (BRKA). The S&P 500 ESG Index is up
1.31% over the last six months, compared with the 0.7% gains of the
regular S&P 500, FactSet market data showed at 1508 GMT.
Write to Dieter Holger at dieter.holger@wsj.com;
@dieterholger
(END) Dow Jones Newswires
October 03, 2019 11:38 ET (15:38 GMT)
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