Underlying Index

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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.
References in periodicals archive ?
MVIS Indices cover several asset classes, including equity, fixed income markets and digital assets and are licensed to serve as underlying indices for financial products.
"We continue to see strong market demand for liquid, cost-effective and capital-efficient tools to track the same underlying indices as the most popular ETFs."
On average, the two underlying indices averaged 6.3% and 5.4%, respectively, in the first 11 months of 2017, compared to 5.1% and 4.7%, respectively, in the same period of 2016, indicating the persistence of inflation.
On average, the two underlying indices averaged 6.3% and 5.4%, respectively, in the first 11 months of 2017, compared with 5.1% and 4.7%, respectively, in the same period of 2016, indicating the persistence of inflation.
State Street Global Advisors announced that the underlying indices tracked by the SPDR Russell 1000 Low Volatility ETF (LGLV) and the SPDR Russell 2000 Low Volatility ETF (SMLV) will be changed as a result of FTSE Russell's decision to terminate the Russell 1000[R]; Low Volatility Index and the Russell 2000 Low Volatility Index as of December 16, 2016.
(BMO AM) today announced changes to the underlying indices of:
He said an ETF with bonds as underlying indices would be suitable here, noting that in the Philippine context, government securities trading was very active in the primary and secondary markets.
"Given the underlying indices for alternative-weighted products do not have the name recognition or track record of the traditional MSCI, S&P or Russell indices, education on their benefits (e.g., reduced risk in volatile market conditions) is an additional step to further adoption."
A criterion would also be devised for determining eligibility of the underlying indices on which option contracts would be offered by the exchange.
The DBLCI Apex Index aims to generate superior results in all economic cycles by investing in a risk-weighted basket of three underlying commodities indices (DBLCI Mean Reversion Enhanced Index, the DB Commodity Harvest Index and the DBLCI Momentum Index.) Historically, the three underlying indices have exhibited low correlation to each other, enabling the DBLCI Apex Index to generate potentially higher returns in all economic cycles.
However, investors should bear in mind that the value of structured products does not include the dividends paid by companies in any underlying indices, and investors have no rights to the underlying investments.
Distributors' product lines should include contracts with various underlying indices and methodologies that perform best in different market conditions.