Empowering Investors with Enhanced Risk Management: Introducing the Nasdaq-100® Volatility Control ™ Indexes
In response to the increasing demand for globally recognized benchmarks, Nasdaq ® is proud to announce the launch of the Nasdaq-100 Volatility Control ™ Indexes. These indexes help investors to manage their exposure to volatility while benefiting from the renowned Nasdaq-100 Total Return™ Index (XNDX™). With a focus on inclusive growth and prosperity, this initiative reflects Nasdaq's dedication to empowering individuals and communities through cutting-edge financial tools and strategies.
Enhanced Risk Management:
The Nasdaq-100 Volatility Control™ Indexes provide investors with a unique opportunity to align their investment goals with their risk tolerance. Each index aims for a consistent level of volatility, ranging from 5% to 12%. This targeted approach helps investors to optimize their investment strategy by mitigating the impact of market volatility while taking advantage of potential returns.
Innovative Technology: The truVol® Risk Control Engine:
At the core of these indexes is the truVol® Risk Control Engine (RCE), developed by Salt Financial. This next-generation volatility control mechanism utilizes intraday data for enhanced responsiveness and adjusts equity exposure based on market events. By harnessing intraday data and utilizing a short-term volatility trend indicator, the truVol® RCE can adjust equity exposure by up to 20%. This innovative approach can generate enhanced returns while maintaining a more stable volatility profile, helping to provide investors with confidence during turbulent market conditions.
Underlying Asset: Nasdaq-100 Total Return™ Index (XNDX™):
The Nasdaq-100 Total Return™ Index (XNDX™) serves as the underlying asset for the Volatility Control Indexes suite. Designed to capture the total return generated by holding stocks within the Nasdaq-100 Index®, XNDX ™ offers investors a comprehensive view of overall performance. The suite dynamically adjusts exposure to XNDX™ based on market volatility, ensuring a more predictable and stable volatility profile while enhancing risk management capabilities.
Benefits of Volatility Control:
The benefits of volatility control are significant for investors. By stabilizing index returns and containing volatility around targeted levels, these mechanisms help improve options pricing and can help reduce drawdowns, increasing potential upside for investors. Furthermore, better pricing allows for better participation rates, leading to improved interest crediting for annuitants. The stability offered by volatility control allows for more consistent participation rates during the renewal process, providing investors with a sense of assurance.
Disclaimer
Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, NDX®, Nasdaq-100 Volatility Control™, XNDX™ are trademarks of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as , either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
© 2023. Nasdaq, Inc. All Rights Reserved.
Copyright © 2023 Salt Financial LLC. “Salt Financial” and “TRUVOL” are registered trademarks of Salt Financial LLC. These trademarks together with others have been licensed to Salt Financial LLC and/or designated third parties. The redistribution, reproduction and/or photocopying of these materials in whole or in part are prohibited without written permission. This document does not constitute an offer of services in jurisdictions where Salt Financial LLC or their respective affiliates (collectively “Salt Financial”) do not have the necessary licenses. All information provided by Salt Financial is impersonal and not tailored to the needs of any person, entity or group of persons. Salt Financial receives compensation in connection with licensing its indices to third parties. Past performance of an index is not a guarantee of future results.
It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. Salt Financial does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. Salt Financial makes no assurance that investment products based on the indices will accurately track index performance or provide positive investment returns. Salt Financial is not an investment advisor and makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any of the statements set forth in this document. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or other similar document that is prepared by or on behalf of the issuer of the investment fund or other investment product or vehicle. Salt Financial is not a tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by Salt Financial to buy, sell, or hold such security, nor is it intended to be and should not be construed as such.
These materials have been prepared solely for informational purposes based upon information generally available to the public and from sources believed to be reliable. No content contained in these materials (including index data, ratings, credit-related analyses and data, research, valuations, model, software or other application or output therefrom) or any part thereof (“Content”) may be modified, reverse engineered, reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of Salt Financial. The Content shall not be used for any unlawful or unauthorized purposes. Salt Financial and its third-party data providers and licensors (collectively, the “Salt Financial LLC Parties”) do not guarantee the accuracy, completeness, timeliness or availability of the Content. The Salt Financial LLC Parties are not responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content. THE CONTENT IS PROVIDED ON AN “AS IS” BASIS. THE SALT FINANCIAL LLC PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION.
In no event shall the Salt Financial LLC Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the Content even if advised of the possibility of such damages.
In addition, Salt Financial provides services to, or relating to, many organizations, including but not limited to issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address. Salt Financial has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process it performs in connection with the services it provides.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Nasdaq Index Research Team
Nasdaq
Nasdaq calculates more than 40,000 diverse indexes, providing coverage across asset classes, countries and sectors.
Read Nasdaq Index Research Team's Bio