The FTSE Russell Fast VT Index Series represents the performance of an investment strategy that provides variable exposure to an underlying equity index, while targeting a specified level of volatility.
The exposure to the underlying index decreases or increases (subject to a cap) on a daily basis proportionally to the ratio between the specified volatility target and the realized volatility of the underlying index. Such dynamic exposure helps achieve a desired level of volatility and is called a “Volatility Control”.
The FTSE Russell Fast VT Index Series uses intraday prices of the underlying index to estimate its realized volatility hence reacting quickly to changing market conditions, and improving risk-adjusted returns
