Recognize downturn phases in time: Deutsche Börse – Market Data & Analytics’ innovative index concept is based on the assumption that price increases in the equity markets are usually slow and steady, i.e. with low volatility. Decreases, on the other hand, usually happen very quickly and mean much higher volatility. High volatility is equated with a high level of risk. If the DAX® index underlying the Risk Trigger Index exceeds a certain defined threshold, the investment is reallocated in its entirety to the money market (eb.rexx® Money Market Index). Equity investments are thus exchanged for risk-free money market investments with a lower but guaranteed return. The investment shifts back to the equity market when the markets are subject to less fluctuation and volatility has fallen below a defined lower limit. The short-term 10-day volatility level of the underlying index is used in this decision. Deutsche Börse is the first index provider to offer this innovative concept and with the DAXplus® Risk Trigger Indices, enables risk-averse investors in particular to participate in the performance of an equity index portfolio while also limiting the risk of loss due by getting out early when volatility is high.
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