Futures roll cost boosts ETFs

摘要

The rising cost of rolling quarterly futures contracts is driving some investors to switch into alternative vehicles such as exchange-traded funds and total return swaps to gain long and leveraged equity exposure in a more efficient manner. Last month, S&P 500 futures rolled rich to fair value for the eighth consecutive month. And with seasonal factors typically exacerbating higher roll costs in December, ETF providers are seeing an uptick in the number of clients considering a switch. "Futures have always been perceived as the doyenne of the finanrial markets because they're efficient, cheap and liquid, but they've been facing headwinds," said Ursula Marchioni, head of ETF research at BlackRock.