The international exchange, Eurex, announced the launch of STOXX USA 500 ESG-X Index futures. After a successful year of ESG trading, more and more investment companies are using ESG derivatives. The new futures contract will be a next step in supporting market participants in their sustainable investment strategies beyond Europe.
The new STOXX USA 500 ESG-X Futures contract is the first U.S. market exchange-listed derivative that does not include thermal coal extraction and coal-fired power plants.
Michael Peters, Member of the Eurex Executive Board, commented:
Michael Peters
We want to offer our clients the greatest possible flexibility in ESG investments. Expanding our offering to the U.S. equity market is therefore the next logical step. Other regions and markets will follow in early March with the launch of further ESG contracts.
Eurex provides traders with a wide array of ESG offerings. Launched in February last year, the STOXX Europe 600 ESG-X Index Futures (FSEG) is based on STOXX’s exclusion methodology. More than 700,000 contracts in total with a notional value of over EUR 10 billion have been traded.
STOXX offers a transparent and comprehensible approach to filtering out undesirable negative components with a low tracking error to the respective parent index. The resulting ESG indexes ae easy to use as benchmarks for asset holders and are suitable as underlying for ETFs, derivatives or structured products.
The Metzler Wertsicherungsfonds 90 ESG (ISIN: DE000A2PPJG8) works increasingly with Eurex ESG derivatives for implementation of sustainable strategies in investment returns without negative effects. The investment fund was recently approved for distribution in Germany and Austria and is one of the first to combine value protection and ESG integration using STOXX Europe 600 ESG-X futures.
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