S&P Launches S&P 500 Dynamic VEQTOR X Index

NEW YORK, Sept. 13 /PRNewswire/ -- Standard & Poor's, the world's leading index provider, announced today the launch of the S&P 500 Dynamic VEQTOR X Index, a companion strategy index to the S&P 500 Dynamic VEQTOR Index which was launched last November.  

Whereas the VEQTOR strategy dynamically allocates between equity, volatility and cash to provide broad equity market exposure with an implied volatility hedge, VEQTOR X is designed to complement an investor's existing U.S. equity allocation. This is achieved by dynamically allocating between long exposure in the S&P 500 VIX Short-Term Futures Index and short exposure in the S&P 500.  

The S&P Dynamic VEQTOR X Index is part of the S&P 500 Dynamic VEQTOR Index Series which allocates between equity and volatility based on the combination of realized and implied volatility trend decision variables.  The allocations are evaluated on a daily basis. A stop-loss feature is also included to limit downside risk.

"Implied equity volatility has historically had a strong negative correlation to equity market returns, and is considered a useful tool to hedge against the potential downside of the broad equity market," says Steven Goldin, Vice President of Strategy Indices for S&P Indices. "S&P Indices is launching the S&P 500 Dynamic VEQTOR X Index as a companion index to serve the needs of investors who already hold US equities and would like to achieve similar-type performance to the S&P 500 Dynamic VEQTOR Index."

For more information on the S&P 500 Dynamic VEQTOR X Index including methodology, index calculations and additions/deletions criteria, please visit www.indices.standardandpoors.com.

About S&P Indices

S&P Indices, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI®, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit www.standardandpoors.com/indices.

About Standard & Poor's

Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com.

SOURCE Standard & Poor's

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