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.
Strategy Features
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Long-term strategy supported by 30+ years of peer-reviewed research
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Pursues alpha by using monetary conditions and firm-specific metrics to select securities
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Weights securities by proprietary IFED score instead of market capitalization
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Avoids the timing issues inherent with factor and smart beta investing
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Adjusts automatically with changes in market conditions to avoid becoming out-of-favor
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Designed to capture upside potential, while limiting downside risk
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Replicable, investable, rules-based and transparent
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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:
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IFED All-Cap US Equity Index™ (IFED-A)
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IFED Large-Cap US Equity Index™ (IFED-LG)
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IFED Large/Mid-Cap US Equity Index™ (IFED-LM)
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IFED Mid-Cap US Equity Index™ (IFED-M)
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IFED Small-Cap US Equity Index™ (IFED-S)
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IFED Low Volatility US Equity Index™ (IFED-LV)
