What is the Nasdaq-100 Volatility Control 7% Index (XNDX7E) and how does it work?

The Nasdaq-100 Volatility Control 7% Index (XNDX7E) is an innovative investment index designed to provide exposure to the Nasdaq-100 Index while managing volatility. It employs a volatility control mechanism that limits downside risk to approximately 7% over a one-year period. The index dynamically adjusts equity exposure, reducing it during high-volatility periods to protect the portfolio and increasing it during low-volatility periods to capture gains. This balanced approach offers both growth potential and stability, making it an attractive option for insurance carriers and pension funds.

Why should insurance carriers consider investing in the Nasdaq-100 Volatility Control 7% Index (XNDX7E)?

Insurance carriers should consider investing in the XNDX7E for several reasons. Firstly, the index provides a balanced approach to growth and risk management, with a volatility control mechanism that limits downside risk to 7%. This helps protect the portfolio from excessive losses while still allowing exposure to the high-growth potential of the Nasdaq-100 Index. Additionally, the dynamic risk adjustment feature ensures that equity exposure is optimized based on market conditions, enhancing long-term stability and aligning with regulatory compliance requirements. The transparency and predictability of the rules-based algorithm also provide confidence in the investment strategy.

How does the Nasdaq-100 Volatility Control 7% Index (XNDX7E) enhance portfolio diversification for insurance carriers?

The XNDX7E enhances portfolio diversification by providing exposure to a broad range of high-growth sectors within the Nasdaq-100 Index. This index comprises 100 leading non-financial companies, spanning various industries such as technology, healthcare, and consumer goods. By investing in the XNDX7E, insurance carriers can spread their risk across these diverse sectors, reducing the impact of sector-specific volatility. This diversification not only mitigates risk but also contributes to a more resilient and stable portfolio, supporting the long-term financial goals of the carriers.

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Nasdaq-100 Volatility Control 7%™ Index

This strategic index is designed for those who seek to balance the growth potential of the Nasdaq-100® with a disciplined approach to risk management, offering a tailored investment solution that aims to enhance returns while maintaining a defined volatility profile.

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About XNDX7E

Key Facts

The Nasdaq-100 Volatility Control 7%™ Index targets 7% volatility using truVol® forecasts to rebalance the index, increasing or decreasing exposure to the Nasdaq-100 Total Return™ Index. XNDX7E 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	XNDX7E™
Type	Excess Return
Weighting	Volatility Driven
Rebalancing	Daily
Volatility Target	7.0%

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