Equity Index Sector futures and options

Manage sector exposure in liquid, capital-efficient futures and options format on key indices from S&P, Dow Jones and Nasdaq.

Get capital-efficient exposure

Enjoy potential margin offsets with other Equity Index futures, low tracking error, zero management fees and actionable SOQ settlement at expiration.

Easily express your view

Go long or short in sector exposure without the constraint of security or single-stock-based short sale regulations.

Add versatility

Use Sector futures or options for spreading, sector rotation, portfolio overlays and cash equitization opportunities.

Get capital-efficient exposure to 19 sectors


Fine-tune your equity index sector exposure with our suite of Sector contracts, including E-mini S&P Select Sector, E-mini S&P Select Industry, Dow Jones Real Estate, E-mini Nasdaq Biotech and PHLX Semiconductor Sector Index futures.

Equity Index Sector futures and options are efficient tools you can use to increase or decrease exposure to particular segments or industries of the broader equity market. Learn about the key features of these contracts.

What’s new? Our product suite now offers Sector options on futures, providing greater trading choice and flexibility to capture equity sector exposure. These seven new options contracts will allow capital-efficient trading of Sector futures and options in one marketplace. View the FAQ to learn more.

Potential tax advantages and margin offsets

60/40 tax treatment*

Sector futures may be exempt from IRS Rule 871(m) transaction withholding. As Section 1256 contracts, these products also may qualify for 60/40 U.S. tax treatment rather than ordinary income tax.*


Potential margin offsets

You may qualify for margin offsets with other CME Group contracts - and up to 70% offsets with E-mini S&P 500 futures. Combined with greater than 20x leverage and efficiency of working with a single clearinghouse, the potential savings can add up.


*Not intended as tax advice. Please consult your tax advisor and/or FCM for more information.

Multiple product applications

Sector rotation

Use in sector rotation strategies to express sector-specific views within a portfolio or to execute relative value or under/over-weighting strategies against the S&P 500 Index.


Spread trading

Capture spreading opportunities vs. constituent stocks of a sector index or the S&P 500 Index, or use to create a portfolio overlay to hedge unintended sector risk.


Cash equitization

Use in cash equitization strategies to efficiently manage cash or gain cheap beta exposure when faced with periodic cash contributions and redemptions.


Sector futures and options products

View our suite of Sector futures and options, designed for managing sector-related risk.

No matching records found.

*Please consult your tax advisor and/or FCM for more information.

Flexible execution, greater liquidity access

In addition to the CME Globex electronic central limit order book, you have a choice of ways to find the liquidity you need to efficiently transact Sector futures orders of size.

Block trades

Block trades are privately negotiated futures, options, or combination transactions that are permitted to be executed apart from the auction market.

EFPs

Exchange for Physical (EFP) block trades allow market participants to sell stock and buy it back for future delivery by buying Single Stock futures (SSF), or by buying the stock and selling the SSF.

BTIC block trades

Basis Trade at Index Close (BTIC) block trades enable market participants to execute a transaction as a basis trade relative to the official close for the underlying index.

Derived block trades

A derived block is a block trade in which the price and quantity of the trade depends on hedging transactions in an eligible related market. Now available.

Maximize capital efficiency with Sector futures and options

Sector futures and options are powerful, capital-efficient tools for market participants seeking equity sector exposure. 

Use case: E-mini Energy Select Sector futures (XAE)

Here are potential capital efficiencies available:

Get started

Find out more about capital efficiencies on Sector futures and use CME CORE to examine hypothetical or real portfolios.

1 Margin requirements are indicative and subject to change; 2 With options launched into SPAN and futures launched into SPAN 2, the offsets between futures and options will initially be computed by Cross Model offset (CMO) until both options and futures are margined under SPAN2; 3 ISDA SIMM Methodology; 4 Capital efficiency and listed derivatives take center stage for final UMR phases

Equity Index futures insights

Managing sector rotation with derived blocks

Target Portfolio Exposure with Equity Sector Futures

Spread Trading Sector Index Futures

Using Sectors to Identify Opportunities Beneath the Benchmark Index Level

Courses

Loading...

Learn more about our products and how they help manage risk

1 modules
Understanding Equity Index Sector futures
Launch lesson

Contact an Equity Index expert

Loading...