Looking for index fund/warrant

[joe2000]

Hi,

I would like to invest money in warrant / fund that tracks one of the known indexes. What are my options ?

Thank you.

 

[bvbfan]

Re: Looking for index fund / warrant

Are you planning on doing it via listed securities like the Street Tracks funds which trade on the ASX or via managed funds

ASX ones -
StreetTracks S&P/ASX 50 Fund - SFY
StreetTracks S&P/ASX 200 Fund - STW

Also there is a product from HBOS (St Andrew's insurance) - http://www.top200shares.com.au/ which is an investment in the ASX 200

The managed funds there are ones but I am not sure of exact names

NOTE
None of these are recommedations just for you to research

 

[joe2000]

Thanks for your reply bvbfan.
I would like to do it through securities traded in the ASX. I am also looking for some leverage.
One other question: Is there any possibility of purchasing Call options that track one of the indexes?

Thank you.

 

[bvbfan]

I think there are options over the STW streettracks fund, guess do a search on STW to see related securities

 

[sails]

Joe2000, have you looked at XJO options? Although they are based on the ASX200, it is said that the market makers use SPI futures to hedge, so the smaller fluctuations are more likely to follow the SPI. However, longer term, this shouldn't be too much of a problem.

Here you will find more info on the asx website: http://www.asx.com.au/investor/options/trading_information/index_options.htm

One other thing though, I believe that undertanding the IV component of option pricing is essential for trading any options and the XJO is certainly no exception. It's IV levels do fluctuate and IV skews are also quite common (meaning different IV levels may exist either vertically, horizonatally and/or between puts and calls).

Other alternatives to XJO options would be SPI futures or index CFDs. Not recommending anything here - just giving some ideas to research for yourself!

 

[mit]

I buy index warrants when I want to hedge for awhile. Again the ASX is a good resource for the current series of puts and calls.

MIT

 

[chansw]

Vanguard got a few as well (e.g. S&P/ASX 200,S&P/ASX 300) and this is not a recommendation.

More info can be found at

http://www.vanguard.com.au/Personal_Investors/Investor_Funds/