He said an ETF with bonds as
underlying indices would be suitable here, noting that in the Philippine context, government securities trading was very active in the primary and secondary markets.
Given the
underlying indices for alternative-weighted products do not have the name recognition or track record of the traditional MSCI, S&P or Russell indices, education on their benefits (e.
A criterion would also be devised for determining eligibility of the
underlying indices on which option contracts would be offered by the exchange.
Historically, the three
underlying indices have exhibited low correlation to each other, enabling the DBLCI Apex Index to generate potentially higher returns in all economic cycles.
Distributors' product lines should include contracts with various
underlying indices and methodologies that perform best in different market conditions.
