In the latest expansions of sustainable investing tools, Cboe Global Markets, one of the world’s largest exchange holding companies, announced plans to list options on the S&P 500 ESG Index. The new options are expected to be listed beginning September 21, 2020.
Ed Tilly, Chairman, President and Chief Executive Officer at Cboe Global Markets, said:
“Many market participants across the globe are increasingly pursuing a sustainable investing agenda that aligns with their own environmental, social and governance preferences. The new Cboe S&P 500 ESG Index options are designed to respond to this growing demand from the marketplace by offering an additional tool that can provide global participants of all sizes with ESG representation within their portfolios, while enabling them to efficiently trade and manage their risk preferences.”
According to S&P Global, the S&P 500 ESG Index is designed to be broad-based indices that measure the performance of securities meeting sustainability criteria, while maintaining similar overall industry group weights as the underlying index.
Cboe stated that the new options are aimed at offering market participants an efficient way to gain exposure to or hedge the U.S. equity market that meets sustainability criteria, while offering investors a risk-return profile similar to that of the S&P 500 Index.
Reid Steadman, Global Head of ESG Indices at S&P Dow Jones Indices, said:
“We are excited that Cboe is launching options based on the S&P 500® ESG Index. This latest development evolves the growing ecosystem of investable products tracking this leading ESG benchmark. Together, these products make sustainable investing possible and efficient for a wider range of market participants globally.”