Index Risk definition

Index Risk. The risk that a mutual fund’s performance may not correspond to its benchmark index for any period of time and may underperform such index or the overall financial market. Additionally, to the extent
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Index Risk. If a derivative is linked to the performance of an index, it will be subject to the risks associated with changes to that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities – including inverse securities (which move in the opposite direction to the index) – may create leverage, to the extent that the increase or decrease in value is at a rate that is a multiple of the changes in the applicable index.
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Examples of Index Risk in a sentence

  • The Ceding Company shall assign to the Reinsurer (i) a fractional interest in the gross proceeds in respect of the Index Risk ▇▇▇▇▇▇ in an amount sufficient to hedge the Quota Share of the index risk associated with the Reinsured Policies; and (ii) the Quota Share of the gross proceeds in respect of any Other Risk ▇▇▇▇▇▇ (the portion of each Hedge that is assigned to the Reinsurer pursuant to (i) and (ii), the “Assigned Hedge Interest Proportion”).

  • Through its investments in the fund above, this Investment Portfolio is subject to the following investment risks (in alphabetical order): Currency Risk, Foreign Investment Risk, Illiquid Index Risk, Investments Risk, Issuer Risk, Large-Cap Risk, Market Risk, Mid-Cap Risk and Non-Diversification Risk.

  • The mutual funds that mainly invest in equity securities (including real estate securities) are subject to the following investment risks (in alphabetical order): China A-Shares Risk; Currency Risk; Cybersecurity Risk; Derivatives Risk; Emerging Markets Risk; Foreign Investment Risk; Illiquid Investments Risk; Index Risk; Issuer Risk (often called Financial Risk); Large-Cap Risk; Market Risk; Mid-Cap Risk; Real Estate Investing Risk; Securities Lending Risk; and Small-Cap Risk.

  • Index Risk — The risk that an index fund’s performance will not correspond to its benchmark index for any period of time and may underperform such index or the overall stock market.

  • The Excess Return index measures the return on a hypothetical investment in the S&P 500® Daily Risk Control 5% USD Total Return Index (Risk Control index or the index) borrowed at the Secured Overnight Financing Rate (SOFR) plus 0.02963%.

  • The Index Fixed-Income Option is subject to the following risks to varying degrees: Call Risk; Credit Risk; Downgrade Risk; Extension Risk; Fixed-Income Foreign Investment Risk; Income Volatility Risk; Index Risk; Interest Rate Risk; Issuer Risk; Liquidity Risk; Market Volatility, Liquidity and Valuation Risk; Prepayment Risk; and U.S. Government Securities Risk.

  • Because the Global Equity Index Option invests in multiple mutual funds that, taken together, invest in a diversified portfolio of securities, it is subject to the following risks to varying degrees: Emerging Markets Risk; Foreign Investment Risk; Index Risk; Issuer Risk; Large-Cap Risk; Liquidity Risk; Market Risk; Mid-Cap Risk; and Small-Cap Risk.

  • This Investment Option is subject to the following risks to varying degrees: Foreign Investment Risk; Index Risk; Issuer Risk; Large-Cap Risk; Liquidity Risk; Market Risk; and Mid-Cap Risk.

  • Through its investments in the mutual funds above, this Investment Option is subject to Active Management Risk, Call Risk, Credit Risk, Derivatives Risk, Emerging Markets Risk, Extension Risk, Fixed-Income Foreign Investment Risk, Income Volatility Risk, Index Risk, Interest Rate Risk, Issuer Risk, Market Volatility, Liquidity and Valuation Risk (types of Market Risk), Non-investment Grade Securities Risk, Prepayment Risk and Special Risks for Inflation- Indexed Bonds.

  • Through its investments in the funds above, this Investment Portfolio is subject to the following investment risks (in alphabetical order): China A-Shares Risk, Country/Regional Risk, Currency Risk, Emerging Markets Risk, Financial Risk, Foreign Investment Risk, Illiquid Investments Risk, Index Risk, Index Replicating Risk, Index Sampling Risk, Interest Rate Risk, Investment Style Risk, Issuer Risk, Large-Cap Risk, Market Risk, Mid-Cap Risk and Stock Market Risk.