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LOVOL
 Cboe Low Volatility IndexSM
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220.62

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220.62

Cboe Low Volatility Index<sup>SM </sup>
  • Overview
  • Performance
     

Cboe Low Volatility IndexSM ("LOVOLSM")

The Cboe LOVOL IndexSM is a benchmark index that is a 40% / 60% blend of the popular Cboe S&P 500 BuyWrite Index (BXMSM) and Cboe VIX Tail Hedge IndexSM (VXTHSM).

The resulting portfolio overlays long VIX® calls and short S&P 500® calls over an investment in S&P 500 stocks. The LOVOL mix of VIX and SPX options reduces the chance of shortfalls below -10% but still preserves the bulk of market gains. By construction, the LOVOL delivers returns between the BXM and VXTH, or a risk profile between a cushion and a tail hedge. The LOVOL is targeted at the large pool of investors whose preferences have shifted towards "low volatility" assets. In a typical investor's dictionary, this means lower downside volatility plus upside participation.


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The performance quoted represents past performance and does not guarantee future results.