How Exceed creates an index

To create an Exceed Index, we create a portfolio of four defined outcome investments:

Portfolio rebalances quarterly; always to same target characteristics
Each defined outcome investment has a life of approximately one year
At maturity, each defined outcome investment is redeemed and rolled into a new one

A new single defined outcome is tracked each quarter and matures approximately one year later. For the Nasdaq Exceed Defined Protection Index, each defined outcome has an upside cap of approximately 15% and a protection level of 12.5%. Both the cap and protection levels are set based on the value of the S&P 500 Index at the beginning of the defined outcome’s term:

Exceed Index’s rolling portfolio of defined outcome investments with multiple entry points provides additional consistency to Index returns.