The Ibex 35 Dividends and Ibex 35 Inverso are some of the most unknown stock indices where small and medium investors can invest their savings. Each one of them with its own characteristics, but in any way it can become a alternative in equity markets. Because they contemplate two completely different models of understanding investments and that can be very useful at some point in the life of investors.
This class of indices in equities can be configured as a new source to generate returns from a different strategy in the way of conceiving investments. Not surprisingly, these are two stock indices that are recently created and that may have gone unnoticed by a large part of small and medium investors. Especially the one destined for reverse investment since it allows to benefit from the downward movements of the securities that are listed on the national equity markets.
From this general scenario, of course the launch of these new stock market indices for companies is an incentive to obtain benefits in the Spanish stock market. So that in this way, retailers are in a position to have a new channel to regularly follow the evolution of these values. Where a common denominator to all of them is that they are integrated in the selective index of the variable income of our country, the Ibex 35. That is to say, with stock market values that are characterized by their high capitalization.
Ibex 35 Dividends: fixed payments
This very special stock index is a very useful indicator for investors that incorporates the variation in prices of the securities, as well as the profitability obtained by the distribution of dividends and other payments to the shareholder that they offer. This in practice means that they replicate the best values of the Ibex 35. In this regard, it must be emphasized that it has the same components, calculation and adjustment criteria as the one that refers to the national selective. But in this case, referring only to companies that distribute dividends among their shareholders.
Among the listed companies that make this payment in cash, some of the most important of the selective equity index stand out. As in the specific cases of Mediaset (10%), Endesa (7%), Repsol (6%) or Iberdrola (5%) among some of the most relevant. In any case, these companies move with payments with returns between 3% and 10%. Through an account charge that is fixed and guaranteed every year and that are integrated into the Ibex 35 Dividends. As with other squares located in our closest environment.
Effects on investors
As a consequence of these actions in the financial markets, there is no doubt that it will also be easier to analyze the profitability offered by companies through this payment. Like the evolution that has all the values that meet these characteristics. That is, a new model to check the evolution of all values that distribute dividends but from their own index where all these companies are listed. So that in this way the tasks that small and medium investors must carry out are facilitated.
On the other hand, some limitations that this system generates in the quotation cannot be forgotten either. And it is the one that refers to the fact that the companies that distribute dividends that are not in the Ibex 35 are not integrated. Where there is a good group of companies that provide this added value, such as Atresmedia, OHL or Logista. Well, they are not reflected in the Ibex 35 Dividends as it is logical to think on the other hand. Being one of the most negative aspects of this new index of national equities.
Ibex 35 Inverso: bet low
The Ibex 35 Inverso index, for its part, replicates the daily movements of the selective index of the Spanish stock market, but in the opposite direction. That is, so that investors can take advantage of the falling values that are maintained in the financial markets. It is a much more aggressive option than the previous one because the risks are higher. Not surprisingly, through investment strategy you can earn a lot of money. But for the same reasons, leave a lot of euros on the road. Beyond other technical considerations and maybe also from the point of view of its fundamentals.
On the other hand, the calculation formula for this new stock index incorporates an innovative element. Where the same is not perfectly symmetrical to that of the Ibex 35 Dividends since is governed by other very different parameters and in which not all investor profiles can be easily integrated. In addition, it is an easier proposal to bet on lower values without targeting other much more aggressive financial products. As in the specific case of warrants, it offers greater volatility that makes its operations more prone to risk.
Other investments: Inline Warrants
It is a last novelty to invest in other financial products completely different, but that maintain a common constant and that is the risk of their operations. This is what happens to the issues of Inline Warrants that the French entity Societé Generalé has developed. In this specific case it has as underlying asset the Ibex 35 index. This new product is a modality of warrants that incorporates a more innovative and certainly original mechanism. Wherein, if during its life the price of the underlying asset touches or exceeds at any time certain predetermined levels, lower or higher, the maturity is originated in advance.
Regarding this financial product, it should be noted that for future investors they are traded on the Spanish stock market in accordance with the operating rules of the trading segment of warrants, certificates and other products with similar characteristics. During the contracting of these products, deviations in their prices will determine the interruption of the negotiation of the warrants due to early maturity and its definitive withdrawal at the market close of the trading session. As you have seen, it is a much more complex product than the previous ones and will require more learning on your part. In order to avoid unwanted situations for small and medium investors. Which is at the end of the day what it is about.
Other alternative indices
BME has begun to disseminate, through the main providers of stock market information, the volatility indices and strategies with options on the Ibex 35 that it created last October. These indices, which will be published at the close of each session, make it possible to measure implicit market volatility and show the performance of certain investment strategies through products traded on MEFF, BME's derivatives market. The new indices released by BME are:
- El Vibex index is the implicit volatility index of the Spanish market. Measures the implied volatility of options in the selective index of Spanish equities for a maturity of 30 days.
- El Ibex 35 Skew Index which shows the evolution of the volatility skew in the Ibex 35 options. The volatility skew is defined as the volatility differences of each exercise price.
- El Ibex 35 Buywrite index that replicates a buying position in the future of this stock index and a constant sale of call options, therefore, it is a strategy similar to the purchase of a basket made in the Ibex 35 with the extra income from the sale of the option.
- El Ibex 35 Putwrite index which basically replicates a constant sale of options called Put. It is a bullish strategy with the profit limited to the premium entered and with the unlimited losses.
Very similar to warrants
In any case, they are products that are very similar to warrants and are characterized by the fact that they bring greater risks than in other financial products. It is for this precise reason that this class of models in investment they are not aimed at all investment profiles. If not, on the contrary, to a type of retailer that has extensive experience in this kind of complex operations in the financial markets. So that in this way, they are in better conditions to make profitable their movements in the equity markets. Beyond other technical considerations.
On the other hand, it should also be noted that the choice of these new financial products is not the best solution for a large part of small and medium investors. Among other reasons for the lack of knowledge about the mechanics of these innovative investment models. Where prudence there is no doubt that it should be the common denominator of their actions. With the main objective of preserving your monetary contributions above other basic considerations. So that in this way, they are in better conditions to make profitable their movements in the equity markets.