The International Securities Exchange has begun trading options on FocusShares exchange-traded funds that track the performance of four of the exchange’s proprietary indices, the FocusShar
The International Securities Exchange has begun trading options on FocusShares exchange-traded funds that track the performance of four of the exchange’s proprietary indices, the FocusShares ISE-CCM Homeland Security Index Fund, FocusShares ISE Sindex Fund, FocusShares ISE Homebuilders Index Fund and FocusShares ISE-Revere Wal-Mart Supplier Index Fund. Timber Hill is the primary market-maker for all four options.
‘We are pleased to add four new options products to the suite of complementary investment vehicles that are based on our unique sector indices,’ says Kris Monaco, ISE’s director of new product development. ‘Through our partnership with FocusShares, we are providing investors with exciting new products that enable them to trade their views on specialised and emerging market sectors.’
FocusShares chief executive Erik Liik, says: ‘ISE’s innovative indices include only companies that derive a substantial portion of their revenues from a specific industry. The FocusShares ETFs based on these benchmarks provide investors with targeted exposure to each specific sector, and as our products gain momentum we are pleased that investors can now trade options on our ETFs.’
The Homeland Security fund tracks the ISE-CCM Homeland Security Index, which measures the performance of companies primarily engaged in the business of contractual work with the US Department of Homeland Security, law enforcement agencies or providing products or services relating to intelligence and warning, border and transportation security, domestic counter-terrorism, protection of critical infrastructure, defence against catastrophic threats and emergency preparedness and response.
The Sindex fund tracks the performance of the ISE Sindex, which focuses on operators of casinos and gaming facilities, producers of beer and malt liquors, distillers, vintners and producers of other alcoholic beverages, and manufacturers of cigarettes and other tobacco products.
The Homebuilders fund tracks the performance of the ISE Homebuilders Index, which measures stocks of residential construction companies and prefabricated house manufacturers.
The Wal-Mart Supplier fund tracks the performance of the ISE-Revere Wal-Mart Supplier Index, which consists of companies that derive a substantial portion of their revenue from supplying Wal-Mart Stores.