Cboe plans to list new S&P 500 ESG Index Options

The new Cboe S&P 500 ESG Index Options aim to offer investment strategies better focused on environmental, social, and governance (ESG) factors.

Exchange operator Cboe Global Markets has confirmed it will list new S&P 500 ESG Index Options in a bid to expand its S&P Dow Jones Indices product offering.

The Cboe S&P 500 ESG Index Options, which will be available from September 2021, are designed to help market participants trade, hedge or gain exposure to US equities sustainability criteria.

“Many market participants across the globe are increasingly pursuing a sustainable investing agenda that aligns with their own environmental, social, and governance preferences,” said Ed Tilly, chief executive of Cboe Global Markets.

“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.” 

The S&P 500 ESG Index maintains similar overall industry group weights to the S&P 500 Index but also measures the performance of securities meeting sustainability criteria at the same time.

The S&P 500 ESG Index aims to align investment objectives with ESG values and make ESG more central to participants’ portfolios.

“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,” global head of ESG indices at S&P Dow Jones indices Reid Steadman.