, /PRNewswire/ — Bloomberg Indices today announced the launch of the Bloomberg VolMax Indices, which aim to amplify upside potential, dynamically react to different market conditions and tactically reduce equity exposure during periods of volatility, all within a simple, rules-based framework.
Recognizing the importance of risk management while capturing upside growth for today’s markets, the Bloomberg VolMax Indices provide broad access to leveraged solutions that can enhance liquidity and potentially deliver amplified equity upside during favorable economic conditions. The Indices are a risk control version of well-known Bloomberg US Equity Indices that target a specific volatility level via adjusting the exposures of the Underlying Index and a Cash Component.
The Bloomberg VolMax Indices apply a 40% volatility target to provide higher exposure to equities. To reach the target 40% volatility level, the Index dynamically adjusts equity exposure through leverage, up to a maximum of 500%. Because the index uses leverage, …