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8X Long Index linked to Cocoa Future V2

  • Valor 42983113
  • ISIN CH0429831131
Current Value
CurrencyUSD
Daily Change-6.68%
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Vontobel Leveraged Indices

Index concept

Vontobel Leveraged Indices (Factor Indices) calculate the daily percentage performance of a reference instrument multiplied at a constant factor.

The factor is determined at index start date and remains fix over the entire life span of the index.

Vontobel leveraged indices (Factor Indices) hence represent a leveraged investment in a reference instrument.

Opportunities and risks

Vontobel Leveraged Indices can be of type long or short.

A leveraged index of type long increases in value when the reference instrument price increases. The increase is levered with a multiplicator (factor), so the index increases over-proportionally. A decrease in the reference instrument price incurs a leveraged decrease of the index value.

A leveraged index of type short behaves inverted : Here a decrease in the reference instrument price leads to a leveraged increase in the index value. Increasing reference instrument prices lead to a leveraged decrease in the index value.

Due to the performance multiplicator inherent in Leveraged Indices – over-proportional losses, even a total loss is possible. Every leveraged index is equipped with a barrier to limit extreme sudden index value decreases. The barrier determines the maximum value a reference instrument may increase (for short indices, or decrease for long indices) over the timespan of a day. Should the barrier be touched or broken – the index calculation is briefly suspended and a new day is simulated.

Additional information

The Factor Indices are not recognized financial indices but are customized indices conceived by Bank Vontobel AG in its capacity as Index Calculation Agent, their sole function being to act as underlying for this type of security (Factor Certificates).