Equity Index Futures Vs. ETFs

Equity Index futures track the major equity indices (S&P 500, Nasdaq, Dow, Russell) and may be a worthwhile alternative index ETFs for certain trading scenarios.

• Unlike ETFs, Equity Index futures don't charge a management fee (which is known as the expense ratio) but do have commissions and fees associated with trading.
• Futures are also available virtually 24hours per day, six days per week, which means you can trade them when traditional equity markets are closed.
• Because of generally low initial margin requirements, Equity Index futures offer higher leverage than traditional ETFs. Leverage is the ability to gain more exposure to market price movement with less cash.
• Like all futures products, Equity Index futures can be held long or short. Shorting ETFs requires a separate account type in equity markets, and you must borrow (and pay for) the ETFs you plan to short.