Of course, there is life beyond the selective index of Spanish equities. And proof of this is the development for several years of two of them, the Ibex 35 Dividends and Ibex 35 Inverso. They are diametrically opposed in nature and composition. In any case, it is that with its start-up, small and medium investors currently have new channels to channel their investments. On the one hand, with the profitability provided by the securities with dividends to their shareholders. And on the other, betting on the values of the Ibex 35, but in this case on the downside.
To know them better, it should be noted that the first of them is a very useful indicator for investors that incorporates the price variation of securities, as well as the profitability obtained from the distribution of dividends. As a consequence, this new stock index shows the impact that this type of remuneration has on a replica portfolio of the Ibex 35 index. It is convenient to know that these values have the same components, calculation and adjustment criteria as the one referring to the selective one. national. With their corresponding updates that are linked to the payment of ordinary dividends with which they remunerate the shareholders every year.
While on the other hand, the second of the national indices, the Ibex 35 Inverso, is responsible for replicating the daily movements of the Ibex 35, but in the opposite direction. In other words, if in one session the general index has a positive return, the Ibex 35 Inverso index will have a negative profitability in a similar amount. Although, although the calculation formula of this new stock index incorporates an investment element, its behavior is not perfectly symmetrical to that of the Ibex 35. Although in both cases, being formed as two new channels that are already available to all investors from now on.
Ibex 35 Dividends: with benefits
The most important companies in the country are included in this important stock index. For example, Telefónica, Santander, Endesa, BBVA, Iberdrola or Ferrovial, among some of the most notable. That is, all those that distribute profits among their shareholders and without any kind of exceptions. With remuneration levels ranging from only 2% to levels close to 10%. All of them are very high capitalization companies that allow the entry and exit prices of the securities to be adjusted. It is a stock index much to the taste of the most defensive or conservative investors.
In addition, it is part of an investment strategy in which you can invest in fixed income without leaving the equity markets. As one of your reference sources against other more complex or special indices by their very nature. On the other hand, it constitutes a tool to obtain higher returns than in the rest of the securities. Because this class of companies are more stable and do not have greater volatility in the configuration of their prices in the financial markets. In other words, there are fewer risks in the operations that small and medium investors take.
Ibex 35 Inverso: for a down market
This is a much more innovative and original stock index than the previous one. This is because your investment strategy is based on the fact that as the bag goes down, The higher the profits you make on open positions in this very special stock index. It is true that the returns you can generate are very high, but also the risks are certainly important. To the point that you can leave a good part of the investment amount on the way. A reason more than enough not to make excessively strong financial contributions, but they are under the control of your personal accounts.
Another aspect that you should assess from now on about the Ibex 35 Inverse is the greater complexity of operations on the stock market. Because in effect, the replica on the Ibex 35 is not exactly proportional, although at least it is very similar in its percentages. From this approach to investing in equity markets, it must be emphasized that this index is somewhat different from the rest. With very few points in common on them since at the end of the day what we are talking about is a reverse investment. With all that this term means in these precise moments.
Depending on the investor's profile
This is one of the big questions that a good number of small and medium investors ask themselves and that in a certain way has a difficult answer. Everything will depend on the profile you present as a retail investor and of course because of your expectations to grow your personal or family assets. Within this general context, it is the most conservative or defensive retailers that opt for the Ibex 35 Dividends. Precisely because of the stability it offers to its positions on the stock market and with a lower risk in them.
While on the other hand, the Ibex 35 Inverso is more prone to more aggressive or speculative investors. With the desire to obtain high capital gains in longer periods of time, although knowing that its period of permanence is much shorter due to the special characteristics of this index of Spanish equities. Because in it a revaluation is not sought, if not on the contrary that the stock market falls above another series of technical considerations. You can not forget that this index is not the one you use, of those that have existed for a lifetime. It is a class of investment that differs substantially from the more traditional or conventional ones.
Which of these indexes suits me?
Of course, both stock market indices start from completely different concepts. To the point that they do not have the same profile of followers, as evidenced by the data provided by the Spanish investor associations. Where it is found that they are different ways of understanding investment and with different approaches From the beginning. Not surprisingly, it must be emphasized that each of them may need a different time to open positions. In some, one of these indices will be better and in other scenarios it will be the other. Depending on the decision made by small and medium investors.
Another aspect that must be addressed at this time is in relation to its technical analysis. Since while in the Ibex 35 Inverso a very specific scenario is needed, in the Ibex 35 Dividends everything is based on the remuneration offered to shareholders. That is, interests in the investment that have nothing to do with each other. Except in one primordial thing and that is none other than monetize savings above all. The ultimate goal of any investment in the equity markets. As a meeting point for all small and medium investors.
Impact on all investors
The appearance of these new stock market indices has undoubtedly had an immediate effect on the interests of investors and, which should be taken into account, although there are also some limitations in their implementation that will also have to be valued. The main contributions they provide, especially the one referred to the index for dividends, is that from now on the investor will have an index in which all the securities listed on the national selective are grouped, not as up to now that there was no reference. As they happen in the equity markets of other countries in our immediate environment.
While on the contrary, the Ibex 35 Inverso allows you to benefit even if the scenario for the equity markets is not the most desired for investors. In this sense, there are many products with these characteristics that are emerging in recent years to provide more resources to small and medium investors. That they can even earn a lot of money in these kinds of unusual scenarios and that they can return in the next few years. Although any misalignment in the operations may imply the loss of many euros that will go down the road from now on.
In any case, there are two alternatives that you have at hand to understand two ways of approaching investment, in what is precisely one of its most relevant attractions. Because in both scenarios you can earn money little by little because the financial markets support you a little in the predictions, especially in relation to the inverse products in the stock market that are the most problematic to formalize them due to the enormous risk that their operations entail from forever. Not surprisingly, they are not very easy to choose. As they happen in the equity markets of other countries.