Spread Your Bets

Eddy Bae, CFA | Director, Products and Index Operations | eddy@saltfinancial.com

Stock market returns are rarely “average” - big up years drive long-term performance and annual caps often limit participation in those gains. Based on nearly a century of simulated performance, custom indices with volatility control consistently delivered higher annual payoffs than capped benchmarks. Equity and multi-asset custom strategies showed their greatest advantage over caps in the years following stock market declines. Spreading allocations across benchmark caps and equity and multi-asset custom indices can be a smart and easy way to improve the odds of crediting success across always changing market conditions.

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