Examples of Target Volatility in a sentence
The index manages to the Target Volatility by incorporating Fixed Income US Treasury iShares® ETFs and a Cash Constituent.
The index is managed to a 5% volatility level.BlackRock ESG US 5% Index ER (BESGUVCX)The BlackRock ESG US 5% Index ER (the “Index”) objective is to offer exposure to the iShares ESG Aware MSCI USA ETF subject to a 5% Target Volatility.
Target Volatility is the level of volatility that would provide a Participation Rate of 100%.
It operates by varying the exposure that the Units will have to the Reference Asset depending on the Realised Volatility of each Reference Asset and the Target Volatility.
The value of the W&C Instruments and the Cash Settlement Amount will depend on the performance of the Basket Valuet on each Valuation Date which will, in turn, depend on the performance of the Fund on each Valuation Date, as specified in the Target Volatility Conditions in the Base Prospectus.