The best products to invest in fixed and variable income

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Como además es el caso de los denominados fondos cotizados en bolsa (ETF), que es una combinación entre comprar y comercializar acciones en el mercado de valores con fondos de inversión. Pero con el value added what can you target other financial assets, algunos de ellos muy innovadores. Sin que su exposición be tan directa como en determinados mercados financieros. Dicho de otra forma, puede tener un mayor control sobre sus posiciones para deshacer las posiciones en el momento que considere oportuno.

On the other hand, within the investment there is never a lack of products from the fixed income market such as bills, bonds and obligations. All of them products contracted by the most defensive small and medium investors. Even though at this time its profitability must be classified as unsatisfactory for the interests of savers. Without offer more than 2%, even though with the great utility that it is a product free of commissions and other expenses derived from its administration or maintenance.

Investing in equities: trading

The Spanish Stock Exchange traded 32,319 million euros in equities in February, 22% less than in January and 30.6% less than the figure for the same month in 2018. The number of trades was 2.8 million, 21, an 8% lower the previous. month and 37% lower than that registered in February 2018. In the segment of guarantees and certificates 24 million euros were traded, 31.8% less than the previous month and 47.4% less than in the same period of 2018. The number of trades stood at 5,826, 7.5% below January and 36 , 4% less than in the same month of the previous year. The number of issues admitted to trading amounted to 1,186, 108% more than the previous year.

Regarding the exchange-traded funds (ETF) segment, 127 million euros were traded, 37.4% less than the previous month and 68.4% less than the same month of the previous year. The number of operations in February stood at 4,627, a decrease of 16.9% compared to the previous month and of 64.5% compared to the same month of 2018. The fixed income market maintained a high level of activity. The total volume accumulated in the year grew by 77.9%, after trading 28,750 million euros in the last month, 85.3% more than in February 2018. Additionally, the issues admitted to trading increased by 7.8% from the beginning of the year and the outstanding balance increased by 2.9%.

Operations in financial derivatives

In the financial derivatives market, trading increased by 3.9% in the first two months of the year compared to the same period of 2018. This increase was focused on equity futures, which presented an advance of 314.6%. The trading of Ibex 35 alternatives rose 14.8% in the month. While on the contrary, the open position of the set of financial derivatives increased by 7% compared to the previous month.

In this investment chapter in Spain, it is important to note that the main increases were registered in futures and options on the Ibex 35, with advances of 6.8% and 16.5%, respectively. While, on the other hand, the futures and storage options They also had growth in this period analyzed in the national financial markets. In these specific cases, 3.1% and 6.6%, respectively.

Stock exchange manager results

Bolsas y Mercados de España (BME) obtained a net result of 34.8 million euros in the fourth quarter of 2018, 6% less than the corresponding to the same period of the previous year. The net result for the year 2018 amounts to 136.3 million euros, 11.1% less than in 2017. Where the total net profit for the fourth quarter reached 78.8 million euros. They are 0.5% lower than those obtained a year earlier, although they show a positive behavior compared to the two previous quarters. For the exercise as a whole, the net profit amounted to 304.2 million euros, decreasing by 4.9% linked to the previous year.

In a context of very low levels of implicit volatility (15% daily average according to the VIBEX Index, three tenths less than the previous year) the total volume of financial derivatives traded stood at 43.5 million contracts in 2018, 2.4% less than the previous year. In the fourth quarter, trading has remained stable compared to the same period of the previous year with 12.2 million. The Ibex 35 futures contract, the product with the highest margin in the unit, increased its volume of traded contracts by 1.2% in the period analyzed.

Next generation warranties

It is one of the products that has maintained a greater increase in trading in the period analyzed. One of the formats that small and medium investors can contract is through gold. In the last year, several warrant issues have been launched on the market that are characterized by having coverage of various underlyings, among which is the yellow metal. This class of financial products are classified as high risk by financial analysts, since many euros can be lost along the way through their positions.

However, these types of innovative financial products enable investors to have access to very specific markets. Something that otherwise could not be formalized, much less in the precious metals sector, in this case gold. Whatever the case, it is a new alternative to invest in this financial asset so that you can take advantage of the good time that the golden metal is going through. With some very notable revaluations during the last twelve months. In what is configured as one of the safe haven values par excellence, especially given the instability and volatility of the equity markets.

More defensive operations

Within the fixed income market there are bills, bonds and obligations the products most contracted by small and medium investors. All three are fixed income financial products that offer a fixed and guaranteed return every year and are instruments used by the State to finance itself. Any citizen can invest in these securities, which have the appeal of offering a higher return than typical bank deposits. Even though their intermediation margins have dropped a lot in recent years.

Of course, the most popular and well-known product for Spanish savers is the Carta del Estado. Depending on the extent of this asset, there are three offers: letters to six months, one year and 18 months. It is undoubtedly a safe value, since the interest rate is fixed. To this is added that, even when the profitability offered is not very high, the investment period is short. These are the reasons why most money and fixed income mutual funds invest in these products.

Returns under 2%

The one-year invoice currently offers a profitability of 1.1%. A yield higher than that offered by most common bank deposits, given that in general the annual profit does not exceed 0.50%. Whatever the case, one of the great attractions of this traditional fixed income product is that you do not have to wait for the deadline to expire to collect the refund, performance is perceived in advance. In this respect, its mechanics are very similar to that of bank promissory notes.

On the other hand, they are part of an investment portfolio for very defensive or conservative investors. Where the security of savings predominates to the detriment of other more aggressive considerations. Namely, don't expect big surprises of these products, but at least you will have the assurance that you will not lose a euro in open positions in fixed income. With the advantage that you can even select the term of the investment, with a wide variety of proposals. Beyond other technical considerations.

This is one of the drawbacks that the fixed income markets have at the moment and it does not seem that their interest rate will rise much in the coming months. But on the contrary, they tend to stabilize them. Within the fixed income market there are bills, bonds and obligations the products most contracted by small and medium investors. All three are fixed income financial products that offer a fixed and guaranteed return every year and are instruments used by the State to finance itself. Any citizen can invest in these securities, which have the attraction of offering a higher return than usual bank deposits.