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Economic Index Associates

EIA is home to a new paradigm in index investing - supported by 30+ years of academic research

Our indexes pursue alpha by using Fed policy signals to guide stock selection
 

About EIA

Economic Index Associates (EIA) is a developer and licensor of active index strategies that are replicable, investable, rules-based and transparent. 

EIA’s three founders (Robert Johnson, Gerald Jensen and Luis Garcia-Feijoo) are the authorities on the association of Fed monetary policy with security returns – combined they have published over 200 academic articles, which have over 10,000 citations. The basic premise of their original research is captured in their book - Invest With the Fed (McGraw-Hill, 2015).

Leveraging the founders’ extensive research, the “Invest with the Fed” (IFED) methodology uses Fed policy signals and firm fundamentals to guide stock selection. The IFED strategy is a dynamic approach that selects portfolios that align with the market environment signaled by Federal Reserve policy actions.

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Strategy Features

  • Long-term strategy supported by 30+ years of peer-reviewed research 
     

  • Pursues alpha by using monetary conditions and firm-specific metrics to select securities
     

  • Weights securities by proprietary IFED score instead of market capitalization
     

  • Avoids the timing issues inherent with factor and smart beta investing
     

  • Adjusts automatically with changes in market conditions to avoid becoming out-of-favor
     

  • Designed to capture upside potential, while limiting downside risk
     

  • Replicable, investable, rules-based and transparent
     

  • Customizable to meet specific client needs

IFED Indexes

EIA’s initial index offering is the IFED Large-Cap US Equity Index (IFED-L), which was launched on June 9, 2020.

To illustrate the efficacy and broad application of the IFED methodology for the consideration of prospective licensees, EIA maintains the following prototype indexes:

  • IFED All-Cap US Equity Index™  (IFED-A)

  • IFED Large-Cap US Equity Index™  (IFED-LG)

  • IFED Large/Mid-Cap US Equity Index™  (IFED-LM)

  • IFED Mid-Cap US Equity Index™ (IFED-M

  • IFED Small-Cap US Equity Index™ (IFED-S)

  • IFED Low Volatility US Equity Index™ (IFED-LV)

Do You Invest With the Fed?

 

An Introduction to IFED Indexes

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