What is the Nasdaq-100 Volatility Control 12% Index (XNDX12E)?

The Nasdaq-100 Volatility Control 12% Index (XNDX12E) is an advanced investment tool designed for insurance carriers and other institutional investors. It provides exposure to the Nasdaq-100 Index, which includes 100 leading non-financial companies, while employing a volatility control mechanism to manage risk. The index aims for a maximum annualized volatility of 22% and offers a 12% buffer against downside risk over a one-year period. XNDX12E dynamically adjusts equity exposure to protect the portfolio during high volatility and increase gains during low volatility.

How does XNDX12E manage investment risk?

XNDX12E manages investment risk through its sophisticated volatility control mechanism. The index dynamically adjusts equity exposure based on market conditions. During periods of high volatility, it reduces equity exposure to protect the portfolio. Conversely, during periods of low volatility, it increases equity exposure to capture gains. Additionally, XNDX12E provides a 12% buffer against downside risk over a one-year period, offering an extra layer of protection for investors.

Why should insurance carriers consider investing in XNDX12E?

Insurance carriers should consider investing in XNDX12E for several reasons. Firstly, the index offers a balanced approach to risk management and growth potential, which is critical for meeting long-term financial obligations. Secondly, XNDX12E provides a 12% buffer against downside risk, offering protection in volatile markets. Thirdly, the dynamic adjustment of equity exposure ensures that the portfolio is optimized for both stability and growth. Finally, the rules-based algorithm ensures transparency and predictability, aligning with regulatory compliance and solvency requirements.

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Nasdaq-100 Volatility Control 12%™ Index

XNDX12E specifically addresses the appetites of investors who are comfortable with a bit more volatility for potentially higher returns. It stands out by uniquely balancing the aggressive performance potential of the Nasdaq-100® with a structured risk management approach, catering to a niche of investors seeking a more dynamic and volatility-conscious investment experience in the tech sector.

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About XNDX12E

Key Facts

The Nasdaq-100 Volatility Control 12%™ Index targets 12% volatility using truVol® forecasts to rebalance the index, increasing or decreasing exposure to the Nasdaq-100 Total Return™ Index. XNDX12E provides access to the Nasdaq-100®, one of the world’s preeminent large-cap indexes with exposure to innovative growth and technology stocks. This index is ideal for prioritizing capital preservation and exposure to potential market gains, making it suitable for retirement planning and long-term financial goals.

Volatility controlled indices may be well-suited to principal protected products where they can provide market-linked returns through dynamic exposure to the Nasdaq-100 Total Return™ Index while mitigating downside risk by using intraday and daily adjustments based on market events.

What Is Volatility Control and Why It Matters?>>

Inception Date	July 31, 2023
Ticker	XNDX12E™
Type	Excess Return
Weighting	Volatility Driven
Rebalancing	Daily
Volatility Target	12.0%

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