Underlying Index

Underlying Index

An index tracked by an investment vehicle. For example, an exchange-traded fund may track every stock traded on the New York Stock Exchange. In this case, the underlying index is the NYSE Composite.
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The Group will maintain the supply of QETF units and ensure the price of ETF is in line with the value of its underlying index portfolio.
It will maintain the supply of ETF units and ensure that the price is in line with the value of its underlying index portfolio.
It was like a tornado causing catastrophic damage to one or two houses while leaving the rest of the financial neighbourhood virtually unscathed -- including the underlying index and equity options markets that feed into the VIX itself.
The issuers included in the Underlying Index may include small-cap, mid-cap and large-cap companies.
The underlying index of CSOP Nifty 50 Daily (2X) Leveraged Product and CSOP Nifty 50 Daily (-1x) Inverse Product is the Nifty 50 Index on the NSE, which is the benchmark index of India.
Leveraged ETFs may be known as 2x or 3x ETFs, meaning that they move two or three times as much as the underlying index or commodity price or some other baseline.
Institutions also called on the bank to change its official inflation gauge to an underlying index, which strips out changes to mortgage costs.
3 points below the current value of the underlying index.
As to how they select ETF vehicles, 56% of advisors said the brand of the fund was more important than the brand of its underlying index.
However, some advisors may not realize that they need to take the same care and due diligence regarding the construction of newly created indexes, as well as when an ETF sponsor decides to change an underlying index for a fund.
This is because the funds are benchmarked off of an underlying index (or in some cases, more than one index).
Rules-based: Use an underlying index that is rules-based.