A newly released report found that the number of SEC regulated funds using options rose from 10 in 2000 to 157 in 2017, and that the aggregate amount of assets in the options-based funds has risen to more than $54 billion.

1 - Growth in number of funds by KB ES

2 - Growth in AUM Funds by KB ES

The new study, “Performance Analysis of Option-Based Equity Mutual Funds, CEFs and ETFs: An Update” is now available at www.cboe.com/funds  The new white paper updates the original findings of 2014 study of SEC-registered option-based funds, which focus on broad-based U.S. equities.  The new white paper, which is being presented on March 7 at the 34th annual Cboe Risk Management Conference (RMC) U.S.  in Bonita Springs, Florida, finds that the number of options-based funds continued to grow from just 10 in 2000 to 157 in 2017, and presents a sample of equity funds and funds with objectives other than broad-based U.S. equities. Performance analysis of funds benchmarked to indexes beyond diversified U.S. equities is not conducted in this study.  Keith Black, Ph.D, CAIA, CFA, Managing Director, Curriculum and Exams, Chartered Alternative Investment Analyst (CAIA) Association and Edward Szado, Assistant Professor of Finance, Providence College, conducted the study and authored the white paper.

The study also found that the notional value of average daily volume in SPX options rose from $13 billion in 2000 to $287 billion in 2017.

3 - SPX anNotional growth by KB ES

 A link to the 28-page study with much more analysis is at www.cboe.com/funds.