The S&P 500 FC 7% VT TCA 0.50% Decrement Index (USD) ER, or S&P 500 FC 7% Index, applies Fast Convergence technology from BofA Securities to the benchmark S&P 500, delivering dynamic volatility control. The index monitors realized volatility intraday and targets 7% annualized volatility. When volatility exceeds the target, exposure decreases; when below, it increases up to 150% leverage maximum. Multiple daily adjustments aim to outperform traditional end-of-day volatility-controlled indices by reacting faster to market shifts.

This approach seeks to preserve the S&P 500's long-term equity growth while limiting large drawdowns and providing more consistent volatility. Back-tested results show realized volatility closely tracking the 7% target with superior performance compared to slower methodologies.

The index leverages the S&P 500's robust trading ecosystem, positioning it as a foundation for structured products or access vehicles seeking U.S. equity exposure with built-in risk management.

Source: Video - S&P 500 FC 7% Index: The Gold Standard of Indices Meet’s Today’s Technology