HSBC Option trading strategies hsbc Index balances a strategic combination of Global Equities, US Equities, Emerging Markets, Bonds, Gold, and Cash to deliver a high growth potential, low volatility index. The HSBC Vantage5 Index is designed to balance a strategic combination of US and Emerging Market Equities, Bonds, Real Assets, an Inflation ETF, and Cash to deliver overall market growth potential in a low volatility index.
The Index aims to achieve above average returns while guarding against a degree of losses during market downturns. The HSBC Vantage5 Index utilizes the investment concept of Modern Portfolio Theory and the related investment principle of Efficient Frontier in an attempt to maximize investment returns for a given level of market risk. The Index limits exposure to defined levels on both the ETFs and the Asset Classes to avoid an overconcentration in any single asset. The HSBC Vantage5 Index uses a rules-based methodology to capture performance and maximize returns. Each month, the Index composition is made up of a portfolio of investment constituents based on both 3 month and 6 month historical returns to capture both long and short term market momentum.
HSBC Vantage5 Index is designed to dynamically adapt to different market conditions. In volatile market conditions, the Index is designed to allocate its investments in lower volatility ETFs and Cash. The chart is an example of the Index’s ETF allocation from August 2011 to June 2017. July 28, 2011 through June 30, 2017, calculated by the Index Owner. P Dow Jones LLC since March 15, 2017. The chart above was calculated using the same selection criteria and methodology as is employed to select Monthly Reference Portfolios for purposes of calculating the Index return since its inception on March 15, 2017. However, the hypothetical back-tested Index Constituents allocation within Monthly Reference Portfolios prior to March 15, 2017 only reflects the application of that selection methodology in hindsight, since the Index was not actually calculated and published prior to March 15, 2017.
Please see “Risks relating to the index” and “Important information” for more information about hypothetical back-tested performance data. During bearish periods, the average monthly asset allocation would have shifted to a heavier weighting in Cash and Bonds. Conversely, during bullish periods, the average monthly asset allocation would have experienced a greater shift toward equities. The graph above sets forth both actual and hypothetical back-tested performance of the Index from August 1, 2011 through June 30, 2017. The hypothetical back-tested performance of the Index set forth in the graph above was calculated using the selection criteria and methodology employed to calculate the Index since its inception on March 15, 2017.
However, the hypothetical back-tested Index data only reflects the application of that methodology in hindsight, since the Index was not actually calculated and published prior to March 15, 2017. The hypothetical back-tested Index data cannot completely account for the impact of financial risk in actual trading. There are numerous factors related to the equities, bonds, real estate and commodities markets in general that cannot be, and have not been, accounted for in the hypothetical back-tested Index data, all of which can affect actual performance. Consequently, you should not rely on that data as a reflection of what the actual Index performance would have been had the Index been in existence or in forecasting future Index performance. Any hypothetical upward or downward trend in the level of the Index during any period shown is not an indication that the level of the Index is more or less likely to increase to decrease at any time. This may increase the potential for equity outperformance.
The HSBC Vantage5 Index does not impose an intra-month cap on volatility which enables the Index to remain fully invested in the selected portfolio of ETFs for the duration of the month. The HSBC Vantage5 Index as illustrated below demonstrates steady returns since its establishment in August of 2011. P Dow Jones has been selected as the exclusive Calculation Agent and Index Administrator for the HSBC Vantage5 Index. P Dow Jones Indices is based on the firm’s experience, expertise and its reputation as one of the industries benchmark index providers.
Poor’s Financial Services LLC and have been licensed for use by HSBC Bank plc and its affiliates. Index from January 1, 2013 through June 30, 2017. Index since its inception on March 15, 2017. Any hypothetical upward or downward trend in the level of the Index during any period shown is not an indication that the level of the Index is more or less likely to increase or decrease at any time. Certain key features of the HSBC Vantage5 Index have enabled it to outperform other similar multi-asset indices for several years. Greater concentration limits on equity exposure coupled with the ability to exceed its target volatility, but on an intra-month basis only, has lent itself to outperformance compared to other similar indexes.