April 4, 2024
Low-Volatility Indexes Play the Long Game
Key things to know about performance trends for low-volatility indexes.
The performance of crediting strategies based on low-volatility market indexes was weaker in 2022 and 2023 than in previous periods due to high interest rates. This was true across the Life and Annuity industry. However, at the end of last year, a decrease in interest rates led to a rebound in index performance, which was in line with expectations.
Low-volatility indexes are constructed to deliver performance over a long-term horizon, so it is better to evaluate their performance over a longer period than one or two years.
Learn more about the recent performance of low-volatility indexes — and how a 0% floor provides downside protection for Fixed Indexed Annuity (FIA) and Indexed Universal Life (IUL) insurance policies.
Low Volatility Index Performance Overview
