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).