[PDF] Equity ETFs vs. Futures – Analysing Relative Performances

Is the futures market more liquid than ETFs?

The futures market is far more liquid than ETFs for the most traded contracts such as the S&P 500, Nasdaq, bonds, gold, silver, etc. According to the webpage of CME the e-mini S&P 500 trades more in average daily dollar volume than more than all 6 800 ETFs around the globe combined.

What are the differences between US and EU ETFs?

US ETFs are for the most part far more liquid than EU ETFs. This means the only options you have, if you are based in the EU, are to change your status to “professional” or trade US futures. For example, if the average gain per trade is 0.5% in SPY or QQQ, this equals 22 points in S&P 500 futures (ES) and 74 points in Nasdaq (NQ).

Are ETFS a good investment?

The U.S. market has liquid equity ETFs and futures (as well as mutual funds) that allow investors to benefit from equity returns. Stocks require a lot of separate trades and cash flow management as dividends are paid and index changes occur, but there are infinite ways to weight portfolio holdings.

How much money does a futures ETF make a day?

Futures are also incredibly liquid, with S&P500 e-minis trading around $353 billion per day, much more than the stocks in the S&P 500, which together trade “just” $261 billion per day. In contrast, the most liquid ETF in the U.S. is SPY, which trades an average of “just” $32 billion each day.