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Tag Archives: risk control

Nov 28, 2023

The Gold Standard of Indices Meet’s Today’s Technology

Meet the S&P 500 FC Index, an innovative index designed to adjust allocations based on intraday volatility signals as it seeks to increase stability, limit exposure to drawdowns, while optimizing exposure to the S&P 500 via BofA’s Fast Convergence technology.

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Sep 15, 2023

Innovating for Insurance: Charting a “Smarter” Path to the S&P 500

How can an index adjust to prevailing market conditions by design? Meet the S&P 500 IQ Index, a dynamic risk control index that uses intraday technology to rapidly respond to changing markets, increasing S&P 500 exposure when markets are stable and leaning into cash during times of volatility.

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Sep 13, 2023

Innovating for Insurance: S&P 500 Duo Swift Index

How is intraday volatility rebalancing helping new multi-asset indices rapidly respond to changing markets? Look inside the S&P 500 Duo Swift Index, a diverse, multi-asset, risk-controlled index that is dynamic by design.  

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Sep 13, 2022

Defense and Volatility

As the equity market has waned and waxed in 2022, investor interest has naturally turned toward ways of mitigating portfolio losses. Some factor indices can serve this goal, but investors searching for a defensive strategy need to define their search carefully. It’s natural to think that defensive strategies will be less volatile than the market…

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Aug 30, 2022

Defense in the Balance

Balanced portfolios traditionally (and definitionally) hold a mix of stocks and bonds. Stocks have been the better-performing asset over time, but with a level of volatility that many investors find unacceptably high. Although bonds are usually included in a balanced portfolio more as a volatility dampener than a return enhancer, during the bull market in…

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Aug 2, 2022

Time Sensitivity and Volatility Management

We all know that in the long run, the U.S. stock market has performed very well, compounding at well over 10% per year for nearly a century. We also know that sometimes the market performs very poorly, as the S&P 500®’s 20% decline in the first half of 2022 reminds us. For an investor who…

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Jul 19, 2022

A Risk Control Approach to Cryptocurrencies: A Tool for a Crypto Winter

Earlier this year, we reported on the volatility of Bitcoin and cryptocurrencies overall. In February 2022, the market was slightly down from its all-time high in November 2021. S&P Dow Jones Indices had just launched the new S&P Bitcoin and Ethereum Dynamically Rebalancing Risk Control 40% Indices (CET Close), and we saw that risk-adjusted performance…

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Feb 15, 2022

Volatility, Cryptocurrency, and a Risk Control Approach

We’ve all heard it often—that volatility is a “feature” of Bitcoin and, by extension, the cryptocurrency market in general. While not all of us would agree with calling it a feature, most would agree that there is a significant amount of volatility in the cryptocurrency market. And, depending on your role—trader, asset manager, advisor, observer—you…

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Jan 19, 2021

Manage Drawdown and Recovery with Dynamic Allocation

In October 2019, S&P Dow Jones Indices launched the S&P ESG Global Macro Index, an ESG-themed, regionally diversified, volatility-managed, multi-asset index. As discussed in my previous blog, the index has generated stable absolute returns of 5.44% annually, a volatility of 4.89%, and downside protection during extreme market scenarios, based on back-tested performance from Aug. 31,…

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Nov 5, 2020

While Fixed Income Yields Remain Low, Theta Gang Generates Income through Covered Calls

In response to the economic ravages of COVID-19, central banks and investors around the world went on a bond buying spree, pushing fixed income yields down and complicating the search for portfolio-generated income. While yields are generally off their March 2020 extremes, by historical standards they remain quite diminished. One alternative strategy to generate supplemental…

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