The iSTOXX Global Millennials Risk Control 5% RV Index aims to create a portfolio, consisting of a mix of the underlying index – the STOXX Global Millennials Index – and a cash component, whose risk fluctuates around a predefined level. The allocation between the two components is determined by the volatility of the underlying index as compared to the risk level targeted by the Risk Control index: the more the underlying index’s volatility exceeds the threshold, the higher the allocation to the cash component.
The underlying index is comprised of companies, which would benefit by the rising spending power of the millennial generation. These businesses primarily use technology and have come up with innovative concepts like sharing economy to cater to the needs of the more tech-savvy and value driven millennials. As the income of the millennial generation stands to increase, these companies are well positioned to benefit with a substantial increase in their revenues.
The iSTOXX Global Millennials Risk Control 5% RV Index utilizes a measure of volatility in realized terms. The allocation to the underlying index, which may be adjusted on a daily basis, is capped to 150%.
Index Guides, Benchmark statement, and other reports are available under the Data tab.