Track volatility across the globe

*For regional indexes (i.e., all except USA), the indexes represent 85% of the free float-adjusted market capitalization in each country.

**Final settlement date for trading in expiring MSCI index options (except USA) ends at 4:00 p.m. (Eastern Time) on the business day (usually a Thursday) preceding their Expiration Date.

Effectively hedge a global equity portfolio

This use case looks at how a pension that holds global equities in their portfolio can effectively hedge that exposure.

Read the Pension Fund use case

Cost to insure against higher volatility appears low

Some institutional investors choose to hedge their downside exposure to market moves by using put options. But what is the cost today of insuring against that risk?

Read MSCI research: Low Volatility Today. Concern or opportunity for tomorrow

Options for managing risk

Options linked to MSCI indexes have helped some investors manage their global exposures and portfolio risk. Trends have shown an increase in liquidity for exchange traded version.

View liquidity-related statistics for options linked to MSCI indexes

Enhancing yield on a global equity portfolio

His use case looks at how an asset manager that is currently running a yield overlay strategy on their US equity holdings can expand the strategy to their global equity portfolio and thereby diversify the sources of income.

Read the Asset Manager use case

Potential to enhance portfolio risk efficiency

Index putwrite strategies may offer a cost-effective opportunity for improved risk efficiency, flexibility and liquidity in asset owner’s portfolios and may be implemented across a variety of traditional asset class indexes including the MSCI EM and MSCI EAFE.

Read Neuberger Berman’s white paper - Simply PutWriting

Cboe MSCI Emerging Markets PutWrite Index (PXEF)

PXEF is an index that tracks the hypothetical performance of an index cash-secured putwrite strategy.

Explore the PXEF index dashboard

Diversification of client’s portfolio

This use case looks at how an RIA is able to use the newly expanded suite of MSCI index options to tactically over/underweight exposures to different countries or regions in order to give their clients diversified equity exposure.

Read the RIA use case

Improving diversification by harvesting premiums & cushioning risk

Wilshire Associates and Cboe have released a study examining the effectiveness of option-selling strategies on international, developed and emerging market equities.

Read the Wilshire MSCI Option Study

Cboe MSCI Emerging Markets Buywrite Index (BXEF)

The Wilshire paper explores the expanded efficient frontier with a 15% allocation to BXEF to a 60/40 portfolio. Check out the Cboe BXEF index that tracks the performance of a hypothetical buy-write strategy on the MXEF index.

Explore the BXEF index dashboard