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Barclays Trailblazer Sectors 5 Index

The Barclays Trailblazer Sectors 5 Index utilizes the principles of modern portfolio theory to track a portfolio of exchange-traded funds that provide exposure to U.S. equity sectors and fixed-income assets and cash, while targeting a volatility of 5%.

Overview

The Barclays Trailblazer Sectors 5 Index (“Index”) is a cross-asset allocation strategy based on modern portfolio theory which aims to achieve an optimized risk-return portfolio. The Index:
  • Provides exposure to underliers that include 10 exchange-traded funds representing sectors of the U.S. equity market and 3 exchange-traded funds that invest primarily in high-yield corporate bond securities of U.S. companies, long-duration U.S. Treasury bonds or investment-grade mortgage-backed pass-through securities.
  • Uses a risk-based approach to portfolio selection and return forecasting – the strategy aims to select an index constituent portfolio that maximizes expected returns for a given level of risk. Trailblazer does not apply restrictive asset caps during portfolio selection.
  • Applies a volatility control mechanism that targets 5% volatility by dynamically adjusting Index exposure to its portfolio.
  • Is leveraged for a maximum portfolio exposure of 150%.
  • Calculates performance in excess of the cash index and a daily deduction of 0.85% per annum fee.

Index Information

Ticker:

BXIITBZ5

Index Sponsor:

Barclays Bank PLC

Currency: 

USD

Number of Underliers:

13

Volatility Target:

5%

Index Base Date:

December 13, 2003


Index Composition

Name

Ticker

Equity Sector ETF

Energy Select Sector SPDR Fund

XLE UP Equity

Materials Select Sector SPDR Fund

XLB UP Equity

Industrial Select Sector SPDR Fund

XLI UP Equity

Consumer Discretionary Select Sector SPDR Fund

XLY UP Equity

Consumer Staples Select Sector SPDR Fund

XLP UP Equity

Health Care Select Sector SPDR Fund

XLV UP Equity

Financial Select Sector SPDR Fund

XLF UP Equity

Utilities Select Sector SPDR Fund

XLU UP Equity

Technology Select Sector SPDR Fund

XLK UP Equity

iShares® Dow Jones U.S. Real Estate Index Fund

IYR UP Equity

Fixed Income Asset ETF

iShares® 20+ Year Treasury Bond ETF

TLT UP Equity

iShares® MBS ETF

MBB UP Equity

iShares® iBoxx $ High Yield Corporate Bond ETF

HYG UP Equity

Cash

For information relating to Certificates of Deposit that are linked to the Barclays Trailblazer Sectors 5 Index or other indexes linked to market-linked products, please refer to the Incapital website or consult the respective offering documents.

The material contained herein is for informational purposes only, designed to illustrate an index created by the Index Sponsor that implies an investment strategy achieved through exposure to particular underlying financial instruments. The information contained herein is for illustrative purposes only and is not meant to forecast, imply, or guarantee the future performance of any particular investment or financial product, which will vary.  An investment cannot be made directly in an index.  An index is an unmanaged statistical composite and index performance does not include payment of any sales charges, expenses or fees an investor would pay to purchase the underlining securities or any financial product that may be linked to the index.  Such costs would lower performance.

Incapital does not warrant the accuracy or completeness of any information contained herein and provides no assurance that this information is, in fact, accurate.  The information contained herein is subject to change without notice.  Any representations, projections and comparisons contained herein may not reflect the opinions of Incapital and may not be accurate either now or at a future date.  Consequently, you should not rely on such representations, projections, comparisons or other opinions when selecting any investment product or making a recommendation to a customer.  Current and future economic and other market events concerning an investment product or an index may cause the information provided herein to be incorrect.  Past performance is not indicative of future results and should never be relied upon in making an investment decision or recommendation.  Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person.  Product suitability must be independently determined for each individual investor.  Incapital explicitly disclaims any responsibility for product suitability or suitability determinations related to individual investors.

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