The S&P 500 Index® is well understood; consumers know what it is and how it works, and the performance of the S&P 500 Index is widely reported in the financial press.
But, should index-annuity buyers go all-in on a single, stock-market index?
EquiTrust index annuities and life-insurance products offer index alternatives: risk-controlled indices. Instead of consisting entirely of stocks, a risk-controlled index is only partially made up of stocks. A portion of the index typically consists of cash, which has zero volatility. During times that stock volatility is high, a risk-controlled index adjusts its mix of assets to use more cash and less stock. This lowers volatility back to the desired range and serves to keep option costs within a desired range.
Also, a risk-controlled index may bundle a more diversified collection of assets than just stocks, and do it in a way that makes the index unique in the marketplace.
Learn how index accounts linked to a risk-controlled index adds diversification, reduces volatility, and may achieve more consistent index credits.
Barclays Focus50 Index client flyer
S&P MARC 5% Excess Return Index client flyer
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