Go in with your eyes wide open!
December 8, 2023 by Sheryl J. Moore
Reading an ad, promoting a hybrid index that is used on indexed annuities.
I HOPE you know that one of the constituents in nearly all hybrid/engineered/bespoke/volatility-controlled indices is CASH.
Index providers control the allocation of funds within the index’s constituents.
If the index is heavily weighted toward cash, this WILL have the effect of drag on your performance.
This is one of the reasons you may see comparatively better participation rates/caps/spread rates.
Go in with your eyes wide open! -sjm
Categories: Moore on the Market