Cboe Global Markets Plans to Launch S&P 500® Equal Weight Index Options on April 14, 2025
March 10, 2025
- New options to be listed on the S&P 500 Equal Weight Index (EWI)
- S&P 500 EWI Index allocates each constituent a fixed weight at each quarterly rebalance
- Launch to meet evolving market exposure demand for additional choice in indices and derivatives
CHICAGO and BOCA RATON, Fla., March 10, 2025 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network today announced plans to launch options on the S&P 500 Equal Weight Index (EWI) on April 14, 2025, pending regulatory review. The new initiative was announced today at the 50th International Futures Industry Conference in Boca Raton, Florida.
S&P 500 EWI options will be cash-settled and based on 1/10th the value of the S&P 500 EWI, the equal-weight version of the S&P 500 Index. The S&P 500 EWI includes the same constituents as the capitalization-weighted S&P 500 Index, but each constituent of the S&P 500 EWI is allocated a fixed weight of 0.2% of the index total at each quarterly rebalance.
The equal-weight design of the S&P 500 EWI aims to provide different exposure to the same constituents of the capitalization-weighted S&P 500 Index. For example, as of December 20, 2024, the bottom 400 constituents represented approximately 80% of the S&P 500 EWI, compared to just 26% in the S&P 500 Index.
“The U.S. equity market’s increasing levels of concentration has led to market participants searching for additional tools to manage risk and diversify their exposure,” said Rob Hocking, Global Head of Product Innovation at Cboe. “Investors have long turned to S&P 500 Index options to help address volatility and geopolitical concerns, and by adding S&P 500 Equal Weight Index options to the toolkit, investors can gain broad exposure to the same constituents but with the ability to take a more targeted approach and hedge against idiosyncratic risks. S&P Dow Jones Indices has long been an important licensor of Cboe, and we are excited to continue innovating in an evolving market with the timely launch of these options.”
S&P 500 EWI options may provide exposure to an index designed to be less impacted by a potential shift in concentration and momentum, and aim to offer investors the ability to hedge against potential swings in the largest S&P 500 stocks.
“For generations, The 500™ has been widely regarded as the best-single gauge of the U.S. equity market. To complement S&P DJI’s iconic market benchmark, the S&P 500 Equal Weight Index launched more than two decades ago to measure the performance of equal allocations among S&P 500 constituents,” said Tim Brennan, Global Head of Capital Markets at S&P Dow Jones Indices. “With concentration in the broader U.S. equity market increasing to its highest level in many years, S&P DJI is excited to collaborate with Cboe as it expands its offering to market participants who are interested in the potential diversification benefits of an equal-weighted approach.”
The planned S&P 500 EWI options launch is the latest innovation in the suite of products developed by Cboe based on S&P DJI indices. The suite includes tradable products such as the Cboe S&P 500 Index options (SPX), Mini SPX Options (XSP) and the recently launched Cboe S&P 500 Variance (VA) Futures, in addition to various volatility indices including the Cboe S&P 500 Dispersion Index (DSPX), Cboe S&P 500 Constituent Volatility Index (VIXEQ), and Cboe Implied Correlation® Indices. Cboe is currently developing a futures product on the DSPX Index to be listed on Cboe Futures Exchange (CFE), subject to regulatory review.
S&P 500 EWI options will be available during regular trading hours (RTH) between 9:30 a.m. ET and 4:15 p.m. ET. To learn more about the upcoming launch of the S&P 500 EWI options, visit the pre-launch resource hub here.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.
