S&P 500 Futures Basis

Overview

Our S&P 500 Futures Basis strategy is the highest yielding cash alternative with the following characteristics:

  • Consistently outperforms 0-3 month T-bills while having a similar risk profile, short duration, high liquidity, and low costs.

  • Optional duration-matched leverage can further boost yield.

  • Additional tax efficiencies and optional tax-loss harvesting features.

  • Competitive fee structure ensures that we get paid only if we add value to our clients by outperforming the benchmark T-bill index.

  • Referenced in Financial Times and Bloomberg as the highest yielding cash alternative.

  • Monetizes the interest rate embedded within S&P 500 futures, which trades above T-bills due to well-known economic reasons.

  • Average annualized outperformance of ~1% over T-bills.

  • For historical yields and returns, please refer to the EFIX Index and EFIR Index

Features

Minimum Investment$500,000
Management FeeNone
Outperformance Fee20%
LiquidityDaily
LeverageOptional
Tax Loss HarvestingOptional
StructureSMA

Portfolio Details

Average Maturity21 days
Strategy Implied Yield4.63%
T-bill Implied Yield3.96%
Implied Premium0.67%
Inception Date14th Jun 2024

As of 28th Nov 2025

Performance (net of fees)

Loading performance…

Annualized returns are calculated by multiplying holding period returns by [365 / number of days from period beginning settle date to period ending settle date]. Annualized returns are provided for ease of comparison with treasury bills and other products typically quoted in terms of annualized yields. Futures are marked to [Spot Close + BTIC Settle] rather than [Futures Settle]; we believe the former better reflects the portfolio liquidation value. These figures are indicative and should not be construed as guaranteed returns. Leverage increases potential returns but also magnifies potential losses. Investors should carefully consider their risk tolerance before employing leveraged strategies.