The Nasdaq OMX Group (Nasdaq:NDAQ) and DWS Investments, the U.S. retail unit of Deutsche Bank's global Asset Management division, today jointly announce the launch of the DWS Nasdaq-100 Volatility Target Index (Nasdaq:VOLNDX), a new benchmark designed to provide exposure to the Nasdaq-100 Index in a risk-controlled manner.
"The ability to manage risk cannot be overemphasized in these volatile market conditions," said NASDAQ OMX Executive Vice President John Jacobs. "The DWS NASDAQ-100 Volatility Target Index incorporates a volatility control mechanism, providing investors with adequate levels of exposure to world-class companies while simultaneously limiting risk."
The Index provides variable exposure to the NASDAQ-100 Index using a volatility control mechanism designed to limit risk by dynamically adjusting exposure between the NASDAQ-100 Index (the "NASDAQ Component") and a cash investment (the "Cash Component"). As the volatility of the NASDAQ-100 Index increases, the Index decreases exposure to the NASDAQ-100 Index. As volatility decreases, exposure to the NASDAQ-100 Index increases, potentially becoming leveraged. For more information on the DWS NASDAQ-100 Volatility Target Index, including index methodology, visit NASDAQ.com/indexes.
"Recent market events combined with changing demographics have altered the investment landscape," said Chris Warren, Managing Director and Head of Structured Products Americas at DWS Investments. "Consequently, investment objectives are more complex than just going long the market - investing in a risk-controlled manner is critical given an increased focus upon wealth preservation."
Included in the NASDAQ-100 Index are the 100 largest domestic and international non-financial securities reflecting companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology listed on the NASDAQ. For more information about the NASDAQ-100 Index, including detailed eligibility criteria, visit NASDAQ.com/indexes.