A volatility target is a mechanism which dynamically allocates between a risky asset and a risk-free asset. When the realised volatility of the risky asset is below the target, the allocation to the risky asset can be over 100%. Conversely, allocation to the risky asset falls below 100% (and has an allocation to the risk-free asset), when the realised volatility is above the target. The risky asset in the indices tracks the price movements of underlying instruments like funds or a basket of mutual stocks.
Volatility target of 12% (annualized), the risky asset in this index tracks the performance of a portfolio of Variopartner Global Medtech Fund (60%) and Medical Strategy Biohealth Trends Fund (40%). There is also a 3.5% synthetic dividend adjustment.
Volatility target of 10% (annualized), the risky asset in this index tracks the performance of a portfolio of stocks of companies being involved in proving Online Security.
Volatility target of 9% (annualized), the risky asset in this index tracks the price movements of a fixed portfolio containing 10 stocks, who historically have had a higher performance and lower volatility than the rest of the US market. The stocks are equally weighted. There is also a 3% synthetic dividend.
Volatility target of 5% (annualized), the risky asset in this index tracks the performance of a mutual fund managed by the asset manager H2O. There is also a 1% synthetic dividend.
Volatility target of 3% (annualized), the risky asset in this index tracks the performance of an equally-weighted portfolio of five well-established mutual funds, focussed on Fixed Income investments, with high AUM and a good track record, diversified by region. There is also a 1% synthetic dividend.