You are absolutely right that futures exposure involves financing and carry dynamics, meaning the resulting return profile differs from direct physical ownership of the index.
The article intentionally approached derivatives from a portfolio-engineering and capital-efficiency perspective, focusing on how synthetic exposure can enhance allocation flexibility and risk management.
Implementation frictions, financing conditions, basis behavior, and carry efficiency are indeed critical considerations and become even more relevant under changing volatility and liquidity regimes.
Excellent observation, Francisco.
You are absolutely right that futures exposure involves financing and carry dynamics, meaning the resulting return profile differs from direct physical ownership of the index.
The article intentionally approached derivatives from a portfolio-engineering and capital-efficiency perspective, focusing on how synthetic exposure can enhance allocation flexibility and risk management.
Implementation frictions, financing conditions, basis behavior, and carry efficiency are indeed critical considerations and become even more relevant under changing volatility and liquidity regimes.