Suitability of Futures vs. Swaps | Russell Investments

Equity index futures vs. total return swaps

Seven key factors to consider when determining which synthetic instrument is most appropriate in a given situation. Request today.

By Brian Causey

Equity index futures and total return swaps are synthetic instruments that institutional investors commonly use to overlay cash, hedge exposures, and facilitate asset allocation shifts. While the instruments may have similar underlying exposures, there are important differences between the two.

This Strategy Spotlight outlines the important factors for investors to consider as they assess the suitability of futures versus total return swaps.

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