SMI Risk Control

A target volatility concept is applied to the SMI (TR) index (CH0000222130). Whereas the risk profile of the SMI (TR) index is the uncontrolled outcome of the existing market-cap weighted index concept, the Risk Control index controls for risk by aiming for a target volatility of 5% (10%, 15%, 20%). In order to control for risk, the index shifts between a risk free money market investment (measured via SARON) and a risky part (measured by the SMI (TR) index).

^{Legal notice: SMI Risk Control Indices is a registered trademark of the SIX Swiss Exchange. Licensing is subject to a fee.}