Why use Exceed Indexes?

Exceed Indexes were created to satisfy investors with risk/return needs beyond direct market exposure.

Each Exceed Index tracks a portfolio of investments providing S&P 500 exposure with defined outcomes. Distinct risk/return exposures are created through a combination of downside protection and upside performance, thereby reducing market ambiguity and allowing investors to meet their individual objectives.

For example, compare the return possibilities of the S&P 500 Index to the Nasdaq Exceed Defined Protection Index. The S&P 500 Index is predictable only in that its performance will match the combined performance of its underlying stocks. But this performance is unbounded in both directions, which may result in great performance or material losses.

The Nasdaq Exceed Defined Protection Index provides a more defined investment outcome, emphasizing risk mitigation. In this case, each of the investments tracked by the Index is bounded with a maximum loss of -12.5% and a maximum gain of 15%.

An illustration of a defined outcome investment on the S&P 500
This defined outcome investment has a floor of -12.5% and a cap of 15%
At maturity, the outcome is based on S&P results within the defined parameters and a maximum gain of 15%.
A Defined Investment Outcome

For investors willing to exchange upside for protection this particular index may be a good trade-off, preferable to a plain vanilla index-based product.