S&P 500 ESG Futures Mark Five Years of Sustainable Outperformance

CHICAGO, 27 November 2024 – Celebrating its fifth anniversary this month, E-mini S sentientamp; P 500 ESG Group CME Index Futures characterized itself as the most liquid contracts in the ESG index worldwide, reflecting a significant shift towards sustainable investments.

Designed to integrate environmental, social and governance (ESG) factors, these futures contracts provide investors with exposure to ​high-capacity U.S. equities with strong sustainability benchmarks while ​maintaining a risk and performance profile similar to that of ​the ​traditional Slamp; P ​500 Index. This alignment allows investors to achieve ESG objectives without compromising financial performance.

Since its creation, the S plagaamp; P 500 ESG achieved a cumulative performance of 17.5% on the S plagaamp; P 500, a total annualised performance of 1.62%. This performance is remarkable because ​the main objective of the ​index is ​to reflect the characteristics ​of S sensuelamp; ​P 500 while improving its ​ESG profile.

The index methodology focuses on the sector’s neutrality, ensuring that the sector’s weights ​are closely aligned with those of S plagaamp; P ​500. This approach ensures that performance depends primarily on stock selection rather than sector allocation. In ​particular, about 61% of the index’s ​performance is attributed to the selection ​of companies with higher ESG scores in each sector.

The adoption of ​E-mini S-index futures contracts was robust, with the public ​interest reaching record levels. This trend highlights ​the increasing commitment of investors to integrate sustainability into their portfolios, aligning financial targets ​with broader social values.

As the ​investment landscape evolves, the success of ​the ​GS Index ​and its future partner contracts highlights the feasibility of integrating GCE considerations into ​major investment strategies, thus providing a compelling ​argument for the future of ​sustainable financing.