Surely one of your most immediate wishes in investing is to buy shares in equities. But you have to know that you don't have to limit yourself to the stock market. At the moment you have other equity products that allow you to make profitable savings. Although in most cases under much more aggressive investment models. As in the specific case of warrants and certificates that have had a significant increase in their trading in the last year.
As is also the case with so-called exchange-traded funds (ETFs), which is a mix between buying and selling shares on the stock market with investment funds. But with the added value that you can target other financial assets, some of them very innovative. Without its exposure being as direct as in certain financial markets. That is, you can have greater control over their positions to undo the positions at the time you consider appropriate.
On the other hand, within the investment there is never a lack of derivative products from the fixed income market such as bills, bonds and obligations. All of them products contracted by the most defensive small and medium investors. Although at this time its profitability must be classified as unsatisfactory for the interests of savers. Without offer more than 2%, although with the great advantage that it is a product free of commissions and other expenses derived from its management or maintenance.
Investing in equities: trading
The Spanish stock market traded 32.319 million euros in variable income in February, 22% less than in January and 30,6% lower than the figure for the same month of 2018. The number of negotiations was 2,8 million, 21,8, 37% lower than the previous month and 2018% lower than that registered in February XNUMX. In the segment of warrants and certificates 24 million euros were negotiated, 31,8% less than the previous month and 47,4% less than in the same period of 2018. The number of negotiations stood at 5.826, 7,5% below January and 36,4% lower than in the same month of the previous year. The number of issues admitted to trading amounted to 1.186, 108% more than the previous year.
Regarding the exchange-traded funds (ETF) segment, 127 million euros were traded, 37,4% lower than the previous month and 68,4% lower than the same month of the previous year. The number of deals in February stood at 4.627, down 16,9% compared to the previous month and 64,5% compared to the same month in 2018. The fixed income market maintained a high activity level. The total volume accumulated in the year grew by 77,9%, after trading 28.750 million euros in the last month, 85,3% higher than in February 2018. Additionally, issues admitted to trading increased by 7,8% since the beginning of the year and the outstanding balance increased by 2,9%.
Operations in financial derivatives
In the financial derivatives market, trading increased by 3,9% in the first two months of the year compared to the same period of 2018. This increase was focused on equity futures, which posted an advance of 314,6%. Trading in Ibex 35 options rose 14,8% in the month. While on the contrary, the open position of the set of financial derivatives increased 7% compared to the previous month.
In this section of investment in Spain, it should be noted that the main increases were registered in futures and options on the Ibex 35, with advances of 6,8% and 16,5%, respectively. While on the other hand, the futures and stock options They also had growth in this period analyzed in the national financial markets. In these specific cases, 3,1% and 6,6%, respectively.
Results of the stock exchange manager
Bolsas y Mercados de España (BME) obtained a net result of 34,8 million euros in the fourth quarter of 2018, 6% less than that corresponding to the same period of the previous year. The net result for the year 2018 amounts to 136,3 million euros, 11,1% less than in 2017. Where the total net income in the fourth quarter reached 78,8 million euros. They are 0,5% less than those obtained a year earlier, although they nevertheless present a positive behavior compared to the two previous quarters. For the exercise as a whole, the net income amounted to 304,2 million euros, decreasing 4,9% in relation to the previous year.
In a context of very low levels of implicit volatility (15% daily average according to the VIBEX index, three tenths less than the previous year) the total volume of financial derivatives traded stood at 43,5 million contracts in 2018, with a decrease of 2,4% compared to the previous year. In the fourth quarter, trading has remained stable compared to the same period of the previous year with 12,2 million. The futures contract on the Ibex 35, the product with the highest margin in the unit, increased its volume of negotiated contracts by 1,2% in the analyzed period.
Next-generation warrants
It is one of the products that has maintained a higher increase in trading in the period analyzed. One of the formats that small and medium investors can contract is through gold. In the last year, several warrant issues have been launched on the market that characterize because they have given coverage of various underlying, among which is the yellow metal. This class of financial products are classified as high risk by financial analysts since many euros can be lost along the way through their positions.
However, such innovative financial products allow investors to access very specific markets. Something that otherwise could not be formalized, much less in the precious metals sector, in this case gold. In any case, it is a new alternative to invest in this financial asset so that you can take advantage of the good time that the golden metal is going through. With some very notable revaluations during the last twelve months. In what is configured as one of the safe haven values par excellence, especially given the instability and volatility of the equity markets.
More defensive operations
Within the fixed income market are the bills, bonds and obligations the products most contracted by small and medium investors. All three are fixed-income financial products that offer a fixed and guaranteed return every year and that constitute instruments used by the State to finance itself. Any citizen can invest in these securities, which have the attraction of offering a higher return than typical bank deposits. Although their intermediation margins have dropped a lot in recent years.
Of course, the most popular and well-known product for the Spanish saver is the letter of the State. Depending on the duration of this asset, there are three offers: the letters to six months, one year and 18 months. It is undoubtedly a safe value, since the interest rate is fixed. To this is added that, although the profitability offered is not very high, the investment period is short. These are the reasons why most money and fixed income mutual funds invest in these products.
Returns below 2%
The one-year bill currently offers a return of 1,1%. A yield higher than that offered by most typical bank deposits, since in general the annual profit does not exceed 0,50%. In any case, one of the great attractions of this very traditional fixed income product is that you do not have to wait for the term to expire to collect the return, since the performance is perceived in advance. In this sense, its mechanics are very similar to what bank promissory notes are.
On the other hand, they are part of an investment portfolio for very defensive or conservative investors. Where the security of savings predominates to the detriment of other more aggressive considerations. Namely, do not expect big surprises of these products, but at least you will have the assurance that you will not lose a single euro on open positions in fixed income. With the advantage that you can even choose the term of the investment, with a wide variety of proposals. Beyond other technical considerations.
This is one of the drawbacks that the fixed income markets have at the moment and it does not seem that its interest rate is going to rise much in the coming months. But, on the contrary, they tend to stabilize them. Within the fixed income market are the bills, bonds and obligations the products most contracted by small and medium investors. All three are fixed-income financial products that offer a fixed and guaranteed return every year and that constitute instruments that the State uses to finance itself. Any citizen can invest in these securities, which have the appeal of offering a higher return than typical bank deposits.