Is the Nasdaq FC Index a good crediting strategy?
It can be, for a buyer who wants growth-tilted, technology-heavy exposure and does not mind a rougher ride than a typical crediting index gives you. The design leans on frequent, rules-based adjustments rather than a single daily check, aiming to pull back fast when the market gets rocky and lean in when it is climbing steadily. Its volatility target sits well above what most competing indexes use, so expect bigger swings in what gets credited from one term to the next. Pair it with a second, calmer index if you would rather not put your whole crediting strategy on one growth-oriented benchmark.
Nasdaq FC Index (BOFANFCC) at a glance
| Index name | Nasdaq FC Index (ticker BOFANFCC) |
|---|---|
| Index provider | Bank of America |
| Underlying benchmark | Nasdaq-100 Total Return Index |
| Launch date | January 29, 2020 |
| Volatility target | 12.5% annualized |
| Rebalancing frequency | Up to once an hour, intraday |
| Maximum equity exposure | Up to 175% of the Nasdaq-100 |
| Typical crediting method | Participation rate; caps and spreads vary by carrier |
| Available in annuities from | Athene |
Today's rates for Nasdaq FC Index (BOFANFCC)
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What the Nasdaq FC Index is
The Nasdaq FC Index, traded under the ticker BOFANFCC, tracks a volatility-managed version of the Nasdaq-100 Total Return Index. Bank of America built it and owns the methodology behind it. Rather than simply mirroring the Nasdaq-100, the index runs a rules-based process that dials market exposure up or down to keep its own volatility close to a set target.
If your annuity search has already led you to an Athene contract, you have likely seen this index listed among the crediting strategies. Below is a plain look at how it is built, how it turns into a credit on your statement, and which contracts currently use it.
How the "Fast Convergence" method works
Bank of America calls its rebalancing approach Fast Convergence, and the name points to what makes this index different: speed. Most rival volatility-controlled indexes check conditions once a day, at the close, and adjust from there. The Nasdaq FC Index can recheck and reset its exposure to the Nasdaq-100 as often as once every trading hour.
That frequency serves two purposes by design. When volatility jumps during the trading day, the index can trim exposure before the closing bell rather than waiting for the next session. When the market is calm and trending upward, the same mechanism can push exposure higher, up to 175% of the Nasdaq-100, to capture more of that steady climb. The tradeoff for that speed is a volatility target of 12.5% annualized, noticeably higher than the 5% target used by many competing indexes, which means bigger swings in either direction.
How your annuity turns index moves into a credit
You never own the Nasdaq FC Index directly. Inside a fixed index annuity, it is simply one of the menu options for calculating your annual (or multi-year) interest credit. The carrier tracks how the index performs over your chosen term, then applies a participation rate, a cap or a spread, whichever your product and term use, to decide what actually lands in your contract.
Here is the math in a round, hypothetical example. Say your term uses a 50% participation rate and the index gains 8% over that period. Your credit would be 4%, or 8% multiplied by 50%. If the index instead lost 6% over the same stretch, your credit would be 0%, and your principal would not be touched by that decline. Actual participation rates, caps and spreads are set by the carrier, vary by product and term, and change over time, so ask your strategist or check the quote box on this page for what is currently available.
Why carriers lean on volatility-controlled indexes
Insurance companies fund the upside they credit you by buying options linked to the index. Those options cost more when the index's implied volatility is higher, and that cost eats into how generous a participation rate, cap or spread the carrier can afford to offer.
A volatility-managed index like this one exists to keep that cost more predictable. By trimming exposure automatically when things get choppy, it tends to hold steadier implied volatility than the raw Nasdaq-100 would, which can translate into stronger crediting terms for you. The flip side shows up in a strong, low-volatility bull run: a volatility-controlled index can lag the index it is built on, because part of its design is deliberately holding some exposure back.
How the design behaves across different markets
The index launched on January 29, 2020, only weeks before markets fell sharply during the COVID-19 downturn, so its earliest stretch doubled as a real-world stress test of the Fast Convergence concept. By design, hourly rebalancing lets it cut exposure faster than a once-a-day peer when volatility spikes, and lets it lean toward its 175% ceiling when conditions stay calm and trending.
Because its volatility target runs well above most competing indexes, expect more variation in what gets credited from one term to the next than a 5%-target index would typically produce. Ask your strategist for the index's full disclosure documents and history rather than judging it off any single stretch of results, good or bad.
Nasdaq FC Index vs. other volatility-controlled indexes
| Index | Underlying benchmark | Volatility target | Rebalancing |
|---|---|---|---|
| Nasdaq FC Index (BOFANFCC) | Nasdaq-100 | 12.5% | Up to hourly |
| S&P 500 Daily Risk Control 5% | S&P 500 | 5% | Daily |
| BNP Paribas Multi Asset Diversified 5 | Multi-asset | 5% | Daily |
| Barclays Atlas 5 | Multi-asset | 5% | Daily |
Most of the field targets 5% volatility and resets once a day. The Nasdaq FC Index stands apart on both counts, with a target more than double the field average and a rebalancing schedule measured in hours rather than a single daily check.
Which annuities use the Nasdaq FC Index
As of this writing, this index is documented as a crediting option inside these Athene fixed index annuities:
- Athene Performance Elite 7, a 7-year surrender contract
- Athene Ascent Pro 10, a 10-year surrender contract
- Athene Aviator 5, a shorter, 5-year surrender contract
- Athene Agility 10, a 10-year surrender contract with a premium bonus
Crediting terms differ by product, term length and state, and carriers can add or remove index options over time. For Athene's full lineup, ratings and background, see our Athene company review.
Who the Nasdaq FC Index fits
This index tends to suit buyers who want growth-oriented, technology-tilted exposure and are comfortable with a higher volatility target than a typical crediting index carries. A longer time horizon helps too, since a multi-year point-to-point term can smooth out some of the short-term swings that come with faster rebalancing.
It is a weaker fit if you are highly conservative or would rather avoid concentrated technology exposure. In that case, a strategy built on the S&P 500 or a multi-asset index will usually deliver a calmer ride. Many buyers do not choose only one index; they split allocations across two or three crediting methods so no single benchmark drives the whole contract's outcome.
Other crediting strategies to compare
- PIMCO Tactical Balanced ER Index: a multi-asset, lower-volatility alternative
- S&P 500 fixed index annuity strategies: the most common crediting benchmark
- Proprietary index strategies: how to evaluate any carrier-built index
- FIA participation rates: the formula behind every index credit
- Fixed index annuity guide: how FIAs work from the ground up
Pros and cons
Pros
- Adjusts exposure far more often (up to hourly) than indexes that only reset once a day
- Can lean into the Nasdaq-100 with exposure as high as 175% during calm, trending markets
- A 0% floor means a losing index term never reduces your annuity's account value
- Faster, steadier volatility management can support stronger crediting terms than the raw Nasdaq-100
- Gives growth-minded buyers a tech-heavy option among their crediting choices
Cons
- A 12.5% volatility target is well above the 5% most rival indexes use, so results swing more
- Heavy concentration in Nasdaq-100 names means real exposure to technology sector swings
- Publicly documented as available mainly through Athene, which limits your carrier choices
- Participation rates, caps and spreads are set by the carrier and change regularly
- Only launched in 2020, so it has a shorter public track record than older indexes
Frequently asked questions
What is the Nasdaq FC Index?
It is a volatility-managed benchmark that Bank of America built on top of the Nasdaq-100 Total Return Index. Its 'Fast Convergence' method resets exposure to the Nasdaq-100 as often as once an hour, aiming to hold volatility near a 12.5% annualized target. Several fixed index annuities let you select it as a crediting strategy.
Can you lose money with the Nasdaq FC Index in an annuity?
Your account value will not drop because the index had a negative term. Fixed index annuities credit 0% in that case, not a loss, so your principal stays protected from market declines. That protection covers index performance only; if you surrender the contract early, a surrender charge can still reduce what you walk away with.
Why isn't the full index return credited to my annuity?
The carrier buys options tied to the index to fund your potential upside, and those options cost money. That cost, plus the carrier's expenses and the guarantee that you can never be credited less than zero, is why you receive a participation rate, cap or spread rather than the index's full return. A steadier, volatility-managed index tends to make those options cheaper, which is part of why carriers can offer better terms on it than on the raw Nasdaq-100.
Is the Nasdaq FC Index better than the S&P 500 for an annuity?
Neither one wins outright. The Nasdaq FC Index leans into technology and growth names with a higher volatility target and fast, rules-based rebalancing. An S&P 500 strategy spreads exposure across a broader set of industries and usually targets less movement. Many buyers put part of their contract in each rather than picking only one.
Which annuities offer the Nasdaq FC Index?
It shows up as a crediting option inside several Athene fixed index annuities, including Performance Elite 7, Ascent Pro 10, Aviator 5 and Agility 10. Availability and terms differ by product and by state, so confirm what your specific contract offers.
Written and reviewed by
James Forren Warren
Licensed Retirement Income Strategist · License #20551202
James Forren Warren is a licensed Retirement Income Strategist with Tax Free Wealth Plan. For the past five years he has helped individuals and families turn their savings into retirement income they can count on. He writes and reviews the annuity research on this site and keeps it plain: what a product does, what it costs you, and who it actually fits.
Educational only, not investment, tax or legal advice. Tax Free Wealth Plan LLC is a licensed insurance agency, not a registered investment adviser or broker-dealer. Annuities are not bank deposits, are not FDIC insured and are not guaranteed by any government agency. Guarantees are backed solely by the claims-paying ability of the issuing insurance company. Features, rates and availability vary by state and change over time; the contract and disclosure documents govern.
