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Dividend index futures first emerged as a niche market. However they are now an asset class of their own, traded by a broad range of investors globally. The accelerated growth of dividend index futures has been fueled by a growing need to hedge dividend exposure as market participants navigate a new era of uncertainty.
In response to this global demand, the Montréal Exchange is launching the S&P/TSX 60 Dividend Index* Futures (''SDV''), a futures contract on the S&P/TSX 60 Dividend Points Index (Annual)*, which seeks to track dividends from the constituents of the S&P/TSX 60 Index*. The index tracks the accumulation of dividends paid annually by the constituents of the S&P/TSX 60 Index and resets to zero at the start of the next period, which coincides with the expiration of the S&P/TSX 60 Index futures.
The MX has partnered with TD Securities to drive the growth and liquidity in the dividend index futures contracts.
ACCESSIBLE
Available to investors in Canada, the U.S. and around the world and enabled for trading during extended hours
CENTRALLY CLEARED
Ability to implement total return strategies using futures and eliminate counterparty risk
TRANSPARENT
An efficient and liquid on-screen market supported by market makers
About S&P/TSX 60 Dividend Index* Futures
S&P/TSX 60 Dividend Points Index*
Annual Performance
Contract
Specifications
Constituents 2020 Dividend Yield and Payments Comparison (2020 vs. 2019)
Directional views Enables investors to express a view on Canadian stock distributions and earnings
Diversification Gives investors the opportunity to trade dividends as a stand-alone asset class
Hedging Provides investors the ability to hedge the risk associated with future dividend payments
Income protection Allows investors to lock in expected and implied dividends
Relative value trading Offers arbitrage opportunities against the underlying index or stocks
Total return strategies Allows investors to replicate total return swaps using futures
* S&P/TSX 60 Index, S&P/TSX 60 Dividend Index, and the S&P 60 Dividend Points Index (Annual) (the “Indices”) are the products of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and TSX Inc. ("TSX"). Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and TSX® is a registered trademark of TSX. SPDJI, Dow Jones, S&P, their respective affiliates and TSX do not sponsor, endorse, sell or promote any products based on the Indices and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions or interruptions of the Indices or any data related thereto.
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Why use S&P/TSX 60 Dividend Index Futures?
Methodology
FAQ
Introducing the S&P/TSX 60 Dividend Index* Futures
Now Available
MONTRÉAL EXCHANGE
S&P/TSX 60 Dividend Index Futures
