Why use Exceed Funds?

Exceed Funds are rules-based and seek to track the Nasdaq Exceed Family of Indexes. Exceed Indexes were created to focus on investors with risk/return needs beyond direct market exposure.

Each Exceed Index tracks a portfolio of term investments that reshape S&P 500 exposure through the use of defined outcome strategies. Different risk/return exposures are created by our choices of downside protection and/or 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 Structured Protection Index. The S&P 500 Index is predictable only in that its performance will match the aggregate performance of its underlying stocks. But we don’t know if the S&P 500 Index will go up, down, or remain flat.

The Nasdaq Exceed Structured Protection Index provides a more targeted outcome. In this case, each defined outcome within the Index targets annual performance of the S&P 500 Index but with a floor of -12.5% and a capped upside 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 Outcome Investment

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