News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

ETFs

Tracking-product providers out to hook each other’s clients

The market used to be split into two species – now ETFs and futures are being used as bait for both

ETF suppliers are trying to reel in futures investors
ETF suppliers are trying to reel in futures investors Photo: iStockPhoto

Users of equity index-tracking products were once easy to tell apart – some favoured futures, others exchange-traded funds. But the rivalry between futures and funds is hotting up.

Futures users - making bets that an index would rise or fall by a certain date, paying only fraction of the full index value upfront, reviewing their position each quarter as the contracts expired - probably like to think of themselves as "sophisticated" investors.

WSJ Logo