Standard & Poor's Launches S&P 500 Dynamic VEQTOR Index

PR Newswire

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NEW YORK, Nov. 18 /PRNewswire/ -- Standard & Poor's, the world's leading index provider, announced today the launch of the S&P 500 Dynamic VEQTOR Index which dynamically allocates between equity, volatility and cash to provide broad equity market exposure with an implied volatility hedge.

"Implied equity volatility typically has a strong negative correlation to equity market returns, and is considered a useful tool to hedge against the potential downside risk of the broad equity market," says Liz Taxin, Director of Strategy Indices for S&P Indices.

The S&P 500 Dynamic VEQTOR Index is comprised of three components: Equity, as represented by the S&P 500; Volatility, as represented by the S&P 500 Short-Term VIX Futures Index; and Cash, as represented by the Overnight LIBOR rate.

The Index allocates between equity and volatility based on the combination of realized and implied volatility trend decision variables, and these allocations are evaluated on a daily basis. A stop-loss feature is also provided to investors to further enhance equity and volatility investing.

The S&P 500 Dynamic VEQTOR Index is a member of the S&P 500 volatility linked indices family which includes the VIX (Chicago Board Options Exchange Volatility Index), the S&P 500 Volatility Arbitrage Index and the S&P 500 VIX Futures Index Series.

For more information on the S&P Dynamic VEQTOR Index, visit: www.standardandpoors.com/indices .

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 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 Global 1200, a composite index comprised of seven regional and country headline indices, the S&P Global BMI, an index with approximately 11,000 constituents, and the S&P GSCI, the industry's most closely watched commodities index. 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 nearly 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

2009-11-18 10:30:00