Volos Dynamic Buffer Index Co-Developed with Nasdaq Licensed to ProShares for New ETF
Volos is proud to announce that our next-generation dynamic buffer index, developed in collaboration with Nasdaq, is now being licensed by ProShares for use in a new ETF product.
This news follows the launch of the ProShares Nasdaq 100 High Income ETF (IQQQ) powered by Volos in early 2024.
A breakthrough in buffer strategy design, the Nasdaq-100 Dynamic Buffer Index (NDXDBI) represents a major step forward for options-powered indexing, and its licensure points towards the increasing usage of next-generation options strategies in widely available ETF products.
The index essentially captures upside participation in the Nasdaq-100 Total Return Index while offering a level of downside protection based on expected market volatility.
More details from Nasdaq’s Index Methodology Documentation:
“On each Index Day, the strategy has exposure to the Nasdaq-100 Total Return Index® and three options that make up a buffer structure linked to the Nasdaq-100® Index. The buffer structure consists of options that typically have one day to expiration, a long close to at-the-money put option, a short out-of-the-money put option and a short out-of-the money call option. Each Index Day that options in the Index expire, new options are notionally bought or sold that expire on the following expiration date of the Exchange listed PM-settled NDX options.”
Innovation in Market Volatility & Downside Protection
Nasdaq and Volos developed the NDXDBI™ index to help meet the growing demand for structured outcome investing in volatile markets. Investors are realizing the potential of dynamic, daily-adjusted strategies rather than static approaches. With the launch of this index, Volos and Nasdaq have continued our journey of offering more adaptive, options-based index solutions to investors.
How Volos Serves Our Clients
Through Volos’ expertise in options-based index design and strategy modeling, we are able to translate advanced systematic strategies into rules-based, investible indexes. Our broader vision is to bring innovation and access to sophisticated options strategies to a wider group of investors globally.
