FTSE StableRisk Index Series

The FTSE StableRisk Indices, designed in association with AlphaSimplex Group, LLC, are a family of risk-controlled multi-asset indices which seek to capture long-term expected returns with less extreme shifts in short-term risk levels.

The indices offer exposure to four asset classes: equities, commodities, currencies and interest rates. A separate index is calculated for each asset class and a composite index including all asset classes is also available. At any given time, including periods of high market volatility, the indices are expected to exhibit relatively stable risk levels. This is achieved by constructing a portfolio of liquid futures contracts to represent each asset class. This portfolio is then rebalanced, as often as daily, with the objective of maintaining the portfolio’s volatility at a given level. This level is typically the long-term average risk of that asset class.