HSBC Vantage5® Index

The HSBC Vantage5 Index is designed to balance a strategic combination of US and Emerging Market Equities, Bonds, Real Assets, an Inflation ETF, and Cash to deliver overall market growth potential in a low volatility index. The Index aims to achieve above average returns while guarding against a degree of losses during market downturns.

HSBC Vantage5 In Brief

The Index

The HSBC Vantage5 Index utilizes the investment concept of Modern Portfolio Theory and the related investment principle of Efficient Frontier in an attempt to maximize investment returns for a given level of market risk.

Target 5%

The Index methodology is based on allocations from a basket of 13 ETFs and Cash to achieve a volatility target of 5%. The Index limits exposure to defined levels on both the ETFs and the Asset Classes to avoid an overconcentration in any single asset.

Maintain & Capture

The HSBC Vantage5 Index uses a rules-based methodology to capture performance and maximize returns. Each month, the Index composition is made up of a portfolio of investment constituents based on both 3 month and 6 month historical returns to capture both long and short term market momentum.




Achieving
Balance

HSBC Vantage5 strategic allocation across multiple assets, and the option to invest up to 50% of the basket in cash, enables stability in turbulent markets.

HSBC Vantage5 Index Components & Caps

Asset Class EFT Name EFT
Ticker		 ETF
Cap		 Asset
Class Cap
Developed
Equities		 SPDR S&P 500® ETF SPY 40% 60%
iShares® Russell 2000 ETF IWM 20%
PowerShares S&P 500 Low Volatility Portfolio SPLV 20%
PowerShares QQQ QQQ 20%
iShares® MSCI EAFE Index ETF EFA 20%
Developed
Bonds		 iShares® 20+ Year Treasury Bond ETF TLT 40% 80%
iShares® iBoxx Investment Grade Corporate Bond ETF LQD 40%
iShares® iBoxx High Yield Corporate Bond ETF HYG 15%
Emerging
Markets		 iShares® MSCI Emerging Markets ETF EEM 20% 30%
iShares® JP Morgan USD Emerging Markets Bond ETF EMB 10%
Real
Assets 		iShares® US Real Estate ETF IYR 20% 30%
SPDR® Gold Shares GLD 20%
Inflation iShares® TIPS Bond ETF TIP 5% 5%
Cash Daily SOFR + a spread adjustment of 0.26161%   50% 50%


HSBC Vantage5 Key Drivers

Key Driver Superior Equity Universe

Equity Universe

The HSBC Vantage5 Index utilizes equity ETF underlyings such as PowerShares QQQ and PowerShares S&P 500 Low Volatility Portfolio (SPLV) to potentially enhance equity returns.

Key Driver Higher Equity Allocation

Higher Equity Allocation

HSBC Vantage5 Index provides a greater maximum allocation to developed and emerging market equities (80%) compared to several other target volatility strategies. This may increase the potential for equity outperformance.

Key Driver No Volatility Cap

No Intra-Month Volatility Cap

The HSBC Vantage5 Index does not impose an intra-month cap on volatility which enables the Index to remain fully invested in the selected portfolio of ETFs for the duration of the month.

The HSBC Vantage5 Index as illustrated below demonstrates steady returns since its establishment in August of 2011. The dynamic reallocation across assets, along with a 5% volatility cap, attempts to mitigate the risk associated with inter-month excessive volatility.

Vantage 5 historical performance
The graph above sets forth the hypothetical back-tested performance of the Index from January 2, 2013 through September 30, 2024. The Index has only been calculated by S&P Dow Jones LLC since March 15, 2017. The hypothetical back-tested performance of the Index set forth in the graph above was calculated using the selection criteria and methodology employed to calculate the Index since its inception on March 15, 2017. However, the hypothetical back-tested Index data only reflects the application of that methodology in hindsight, since the Index was not actually calculated and published prior to March 15, 2017. The hypothetical back-tested Index data cannot completely account for the impact of financial risk in actual trading. There are numerous factors related to the equities, bonds, real estate and commodities markets in general that cannot be, and have not been, accounted for in the hypothetical back-tested Index data, all of which can affect actual performance. Consequently, you should not rely on that data as a reflection of what the actual Index performance would have been had the Index been in existence or in forecasting future Index performance. Any hypothetical upward or downward trend in the level of the Index during any period shown is not an indication that the level of the Index is more or less likely to increase to decrease at any time. Please see “Risks relating to the index” and “Important information” for more information about hypothetical back-tested performance data.
Source: HSBC and S&P
More information regarding use of simulated returns

HSBC Vantage5
Performance


Index Administrator / Index Calculation Agent

S&P Dow Jones has been selected as the exclusive Calculation Agent and Index Administrator for the HSBC Vantage5 Index. The selection of S&P Dow Jones Indices is based on the firm's experience, expertise and its reputation as one of the industries benchmark index providers.

As Calculation Agent and Index Administrator, S&P Dow Jones Indices is responsible for:

  • The integrity of the historical data
  • Ensuring consistency in the Index methodology and calculation
  • Dissemination of Index information and performance
  • Independently managing corporate actions in an unbiased and fair manner

Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC. "Calculated by S&P Custom Indices" and its related stylized mark are service marks of Standard & Poor's Financial Services LLC and have been licensed for use by HSBC Bank plc and its affiliates.


HSBC Vantage5
Current Market Data

For the latest information on the HSBC Vantage5 Index, visit the index feed page



HSBC Vantage5
Index Comparison

Vantage 5 comparison chart with other indices
The graph and table above sets forth the hypothetical back-tested performance of the Index from January 2, 2013 through September 30, 2024. The Index has only been calculated by S&P Dow Jones LLC since March 15, 2017. The hypothetical back-tested performance of the Index set forth in the graph above was calculated using the selection criteria and methodology employed to calculate the Index since its inception on March 15, 2017. However, the hypothetical back-tested Index data only reflects the application of that methodology in hindsight, since the Index was not actually calculated and published prior to March 15, 2017. The hypothetical back-tested Index data cannot completely account for the impact of financial risk in actual trading. There are numerous factors related to the equities, bonds, real estate and commodities markets in general that cannot be, and have not been, accounted for in the hypothetical back-tested Index data, all of which can affect actual performance. Consequently, you should not rely on that data as a reflection of what the actual Index performance would have been had the Index been in existence or in forecasting future Index performance. Any hypothetical upward or downward trend in the level of the Index during any period shown is not an indication that the level of the Index is more or less likely to increase or decrease at any time. Please see “Risks relating to the index” and “Important information” for more information about hypothetical back-tested performance data.
Source: HSBC, Bloomberg and S&P
More information regarding use of simulated returns

Certain key features of the HSBC Vantage5 Index have enabled it to outperform other similar multi-asset indices for several years. Greater concentration limits on equity exposure coupled with the ability to exceed its target volatility, but on an intra-month basis only, has lent itself to outperformance compared to other similar indexes.







Advisor Site

New Advisors

Register Now

Returning Advisors

View Offering Documents