iQ-FOXX turns ATX annual loss 2018 from -20% to +20%
The 2018 stock market year did not bring much joy to investors in general. The ATX, Austria’s leading index, posted a price decline of almost 20 percent, the DAX was hardly any better and the American markets also turned negative at the end of the year. A slowdown in the global economy, the trade dispute between the USA and China and the imminent Brexit at the end of March had a much greater impact on the ATX companies than on companies in the USA.
For the ATX, it was the second largest annual loss in the last 10 years. Of the 20 ATX companies, only three closed 2018 with a positive result. CA IMMOBILIEN with an increase of +5.9%, DO & CO (+61.7%) and VERBUND (+89.9%). The remaining shares brought some severe losses, with the following three companies reporting the largest losses: VOESTALPINE AG (-48.6%), AT&S (-36.4%) and SCHOELLER-BLECKMANN (-31.1%). The year 2018 ended happier for licensees of iQ-FOXX indices.
The alpha indices form the top of the iQ-FOXX rule-based indices. The basic variant “smart BETA” is long or cash positive. Alpha can be achieved by Risk-ON (100% index participation) or Risk-OFF (holding cash). The “enhanced BETA” indices use leverage in upward periods in comparison to “smart BETA”.
The use of iQ-FOXX indices can reduce the extent of drawdowns by up to two thirds. For example, the maximum drawdown of the world stock index has been reduced by two thirds from -54% to -19%. iQ-FOXX indices can be used in a variety of ways and are used for the management of absolute return products, tailor-made funds, discretionary asset management mandates, risk overlays for existing customer portfolios, asset allocation management and multi-asset products. The proprietary iQ-FOXX smart BETA Index range covers all major asset classes such as equities, bonds, commodities, real estate and currencies.