Bloomberg US Dynamic Balance Index II (BXIIUDB2): How It Credits Allianz Annuities (2026)

What is the Bloomberg US Dynamic Balance Index II?

The Bloomberg US Dynamic Balance Index II, traded under the ticker BXIIUDB2, is a rules-based index built to hold two asset classes at once: U.S. large-cap stocks and U.S. investment-grade bonds. Bloomberg launched it on August 14, 2015, and designed it to keep its swings close to a 5% annualized volatility target by shifting the split between those two assets as market conditions change.

You will not find this index in a brokerage account. It functions only as a crediting option inside a handful of Allianz Life fixed index annuities. Pick it, and the insurance company measures its yearly performance and uses that number, run through a cap or a spread, to decide how much interest lands in your contract.

The index leans on two building blocks rather than trading stocks and bonds directly:

• A futures-based index that tracks large-cap U.S. equities, built to move much like S&P 500 futures.
• A futures-based index tied to the Bloomberg US Aggregate Bond Index, the standard benchmark for investment-grade U.S. bonds.

Both pieces are priced using an excess return approach, meaning the index follows futures contracts rather than the spot price of the underlying assets. That detail matters more than it sounds: excess return indexes strip out much of the noise that short-term interest rate swings would otherwise add, which is one reason carriers can keep their cap and participation offers on this index from swinging wildly year to year.

How does the index decide between stocks and bonds?

Every trading day, the index checks how choppy the stock side has been, comparing volatility over the past 20 trading days against the past 40, and uses whichever number is higher. It runs the same comparison for the bond side. Those two volatility readings drive the day's split between stocks and bonds.

The logic behind the split is straightforward:

• Calm stock markets earn a bigger equity allocation, since there is more room to chase growth without breaking the volatility target.
• Choppy stock markets push the mix toward bonds, trading growth potential for steadier footing.
• In a genuine volatility spike, both allocations can shrink at once, leaving part of the index effectively sitting in cash.
• No single day's shift can move more than 3 percentage points, a built-in brake meant to stop the index from overreacting to one bad or one great trading session.

Nothing about this process involves a person making a call. It runs on the same rules whether the headlines are calm or chaotic, which removes the risk of a manager second-guessing the model at exactly the wrong moment.

How an Allianz annuity turns this index into interest

Selecting the Bloomberg US Dynamic Balance Index II inside an Allianz contract means you are choosing one crediting strategy among several, not making a separate investment. The annuity looks at where the index stood at the start of your contract year and where it lands at the end, an approach known as annual point-to-point crediting, then applies whichever crediting method your contract offers.

If the index ends the year in negative territory under either method, you are credited 0%, and your account value from that strategy does not fall because of it. That trade, giving up part of a strong year in exchange for never losing ground to a bad one, is the core deal behind every fixed index annuity, and this index is no exception.

Current cap and spread levels change often and depend on your state, your contract and market conditions at the time, so we do not print live figures here. Ask your licensed strategist for the numbers attached to your specific contract, or use the quote tool on this page.

Which Allianz annuities offer this index?

The Bloomberg US Dynamic Balance Index II shows up as a crediting option in several Allianz Life contracts, each built around a different goal:

• Allianz 222, known for its two-bucket income rider and a base contract with no ongoing rider charge.
• Allianz Accumulation Advantage+, aimed at buyers focused on account growth with a wide set of caps and participation rates to choose from.
• Allianz Core Income 7, which pairs this index with a built-in guaranteed lifetime withdrawal benefit for buyers planning to turn on income.
• Allianz Benefit Control, which layers flexible index choices on top of its own income and benefit features.

For a full look at Allianz Life as a company, including its financial strength ratings and the rest of its product shelf, see our Allianz Life annuity review.

How the index behaves when markets get rough

The whole point of the daily stock-bond split is to lean away from trouble before it fully arrives. During periods when equity markets have turned sharply volatile, the model's rules push it hard toward bonds, sometimes leaving only a small equity sliver in place, precisely because that is what the volatility formula calls for when stock swings widen.

That defensive posture is a design choice, not a guess about where markets are headed. The index does not try to predict the next downturn. It reacts to volatility that has already shown up, then unwinds the bond tilt gradually as calm returns and equity volatility eases back down. Inside your annuity, none of this changes your guarantee. Even in a year the index ends down after all that repositioning, your worst outcome under this strategy is a 0% credit, not a loss.

There is a real cost to that protection, though. Because the model reacts to volatility that has already happened rather than anticipating it, a sharp market reversal can catch the index still holding a bond-heavy stance built for the prior week's conditions. If stocks fall hard and then snap back quickly, the index may still be leaning defensive during part of that rebound, which can mean a smaller equity allocation right when equities are recovering. That is the flip side of a rules-based, backward-looking system: it trades some agility for consistency and removes the guesswork of trying to time the turn yourself.

How it compares with other volatility-managed indexes

The Bloomberg US Dynamic Balance Index II is one of several volatility-controlled indexes carriers use to fund fixed index annuity crediting. Here is how its basic design stacks up against a few others you might come across while shopping:

Against a single-asset index like the Nasdaq FC, which targets more than double the volatility and can lean on heavy leverage, the Bloomberg index is the calmer option by design. Splitting exposure between stocks and bonds rather than dialing leverage up and down on one equity benchmark tends to produce a gentler ride, fewer sharp drawdowns, but also a lower ceiling when equities are running hot. See our Nasdaq FC Index review for a closer look at that comparison.

Against the S&P 500 Daily Risk Control 5% index, which targets the same 5% volatility level but sticks to equities alone, the difference comes down to what happens when stocks and bonds move together instead of offsetting each other. A pure equity risk-control index still has to pull all of its de-risking from cash, since there is no second asset class to lean on. The Bloomberg index's bond sleeve gives it another lever to pull, which is part of why it can hold a more consistent equity exposure in ordinary volatility spikes rather than retreating straight to cash.

Who fits this index

This index tends to suit you if:

• You would rather trade some upside for a smoother year-to-year ride than ride a pure equity index.
• You like the idea of built-in diversification, so you are not manually deciding how much to put in stocks versus bonds.
• You value cap and participation terms that hold steadier at renewal, something the excess return structure is specifically built to support.
• You are funding an income-focused contract, like the Allianz Core Income 7, where steady crediting matters more than chasing the biggest possible number in any one year.

It is probably not the right fit if your main goal is squeezing out maximum growth and you are comfortable with more turbulence along the way. In that case, a single-asset, higher-volatility index may suit you better in a strong equity stretch, at the cost of wider swings.

Most licensed strategists suggest spreading your allocation across two or three crediting strategies inside one contract rather than putting everything behind a single index. If you want help figuring out a mix that fits your goals, request a free quote and we will walk through the options with you.

Related index reviews

• BNP Paribas Multi-Asset Diversified 5 Index (BNPIMAD5): another 5%-volatility, multi-asset index, used by a different carrier
• Nasdaq FC Index (BOFANFCC): a higher-volatility, equity-only alternative
• How FIA crediting methods work: the full breakdown of caps, spreads and participation rates
• Fixed index annuity guide: how the whole product category works