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Untradeable forwards? VHYG

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I am relatively new to spread betting, but finding it interesting to get to grips with. The strategy I'm using involves going long on selected index ETFs, on a long-term basis.  In order to avoid high overnight fees I'm using the longest-dated forward positions I can buy (Sept 24 at the moment).  I tried to purchase a position on VHYG (Vanguard FTSE All-World High Dividend Yield ETF) and got a pop-up saying I couldn't open a new position on that ETF, only close old ones. And sure enough if you dig into the Info section there's a tag "Non-leveraged only". My two questions are:

1. Why is this 'non-leveraged only'? It doesn't seem to be applied to many ETFs and there seems to be nothing obvious which links them. As if to make me more confused VHYL (the income units of the same ETF) can apparently be bought on leverage.

2. Why are forwards even listed on IG for an ETF which can't be leveraged? (Perhaps the answer is that VHYG was bettable until very recently and now needs to be listed to allow people to close positions?)

Any grizzled veterans able to help me out?


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Dear @matt_sb_101,

Thank you for your post and welcome to the IG community! We're thrilled to have you here:).

1. Just a heads up, a stock or ETF can be offered on a leveraged account but may be removed if there are changes in the requirements or broker margin. This is because the costs would need to be transferred to the client if the broker margin is high. Another reason for removal could be if a stock no longer meets our minimum market cap requirements.

2. Absolutely! As mentioned earlier, a stock or ETF can be offered on a leveraged account but may be removed if there are changes in the requirements or broker margin. If that happens, the stock would still be allowed to close existing positions, but new positions would not be opened.



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