Global capital markets are constantly fluctuating, so it’s crucial to mitigate the impact of unexpected dips. S&P Dow Jones Indices, the leading provider of market indices for use in insurance products, has created a diversified multi-asset index that uses an innovative design to manage market volatility.
The S&P MARC 5% (Multi-Asset Risk Control) Index seeks to provide multi-asset diversification within a simple risk weighting framework, tracking three underlying component indices that represent:
– Equities: S&P 500®
– Commodities: S&P GSCI Gold
– Fixed Income: S&P 10-Year U.S. Treasury Note Futures
How Does the S&P MARC 5% Index Work?
In low-volatility environments, the S&P MARC 5% Index risk control mechanism increases market exposure to riskier assets by increasing the allocation to the Index (up to a leveraged position of 150%).
