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Hello,
since I come from Germany, I am not allowed to trade the SPY…
What alternatives can I trade? I manage my system via Broker Transmit.
I would like to trade the product during regular US stock market hours. For futures, the position size is too large for me ($500 each share is fine).
My only idea is that I exercise a SPY option to get the SPY.
Does anyone have any other ideas?
There are mini and even “micro” future contracts.
See:
$5 per point for micro
$50 per point for mini
Even the mirco has 50 times the value of the SPY?
SPY ~ $500 = $0.1 per point.
My system trades all stocks from the S&P 500. There can be a maximum of 60 open trades. When there are so few trades open in the stocks, I would like to mix in my newly developed SPY system. That’s why the SPY trade can only be 1/60 of the trading capital, sometimes e.g. 20/60, so I’m looking for a product with a low price.
However, there doesn’t seem to be anything like that. In my live system the future should be tradable with my account size. Followers who have a small account size have a disadvantage. They may then have to switch to my other system.
I assume you need to look for UCITS (Undertaking for collective investment in transferable securities) compliant ETFs in order to be able to trade them in Germany / Europe. Those are the ones regulated by the European Securities and Markets Authority.
For SP500, there are a few UCITS available on the US exchanges.
CSTNL ISHARES VII PLC CORE S&P 500 ETF (highest volumes)
SPMV iShares Edge S&P 500 Minimum Volatility UCITS ETF
INVMF Invesco S&P 500 UCITS ETF
I checked and these three come up in the C2 database; there are many more.
Check if you’re able to trade them as a German citizen and through your broker.
These fund use synthetic replication and derivatives such as swaps to invest in the stocks of companies operating across the index and just track the long-term average .Generally, all of these may only work if your holding period is very long, but have very low volumes and never 1:1 correlation. Possibly, you will see much higher volume and lower spreads from buying/selling SPY options than these.
