MSCI® Index Options

Manage Global Equity Exposure

Options on the MSCI® EAFE® (MXEA) and MSCI Emerging Markets (MXEF) indices offer investors the potential opportunity to manage global equity exposure, mitigate portfolio risk, and generate additional options premium income.

Benefits of MSCI EAFE and Emerging Markets Index Options

Large Contract Size
MXEA and MXEF options have large notional size - approximately 25 to 30 times the size of comparable ETF options
Cash Settled
Trading account is credited/debited in cash, not ETF shares
European Exercise
No risk of early assignment
60/40 Tax Treatment
Capital gains may benefit from 60/40 tax treatment*

Historical Performance for MSCI EAFE, MSCI Emerging Markets, and S&P 500

Trading MSCI Options

The MSCI EAFE® (ticker MXEA) and MSCI Emerging Markets (ticker MXEF) indices are leading benchmarks for tracking large- and mid-cap developed and emerging market equity performance outside of North America, respectively.

Trading in expiring MXEA and MXEF options ends at 4:15 p.m. (Eastern time) on the business day (usually a Thursday) preceding their expiration date.

Comparison of MSCI Options Products

MSCI EAFE® Index Options iShares® MSCI EAFE ETF
Options Chain MXEA EFA
Root Ticker Symbol MXEA EFA
AM or PM Settlement PM-settled PM-settled
Approximate Notional Size
Exercise Style European American
Settlement Type Cash Physical Shares of ETF
MSCI Emerging Markets Index iShares® MSCI EEM ETF
Options Chain MXEF EEM
Root Ticker Symbol MXEF EEM
AM or PM Settlement PM-settled PM-settled
Approximate Notional Size
Exercise Style European American
Settlement Type Cash Physical Shares of ETF

Cboe MSCI Options Strategy Benchmark Indices

Strategy benchmarks provide investors with a measure of the relative performance of MSCI EAFE and Emerging Markets Index-based options strategies over time.

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Wilshire

Improving Diversification by Harvesting Premiums & Cushioning Risk: Cboe MSCI Option Benchmark Analysis

*Under section 1256 of the Tax Code, profit and loss on transactions in certain exchange-traded options, including MSCI, are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the Tax Code. Investors should consult with their tax advisors to determine how the profit and loss on any particular option strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations.