Economic Index Associates (EIA) is a developer and licensor of innovative, investable indexes.
EIA provides its licensees and data subscribers with: i) index data, including index components, security rankings and IFED scores; and ii) a powerful IFED Portfolio Wizard tool to customize and back-test indexes and investment strategies.
EIA has pioneered the concept of economic indexing, which applies the academically researched and validated impact of Federal Reserve policy decisions on security prices.
EIA's patent pending Invest with the Fed (IFED) index methodology identifies specific monetary policy trends and combines them with key firm metrics to create index portfolios that offer consistent, superior risk-adjusted returns.
The IFED index methodology overcomes the deficiencies of smart beta and factor-based strategies that are static in nature and result in portfolio components that are often "out of favor." Instead, IFED indexes are always “in favor” because the strategy adjusts to select securities that are ideally suited to the current monetary policy environment.
IFED indexes represent active strategies that are designed to be replicable, investable, rules-based and transparent.
The IFED indexes are ideally suited to: provide the basis for index-linked products; or, serve as an overlay or supplement to improve the risk and return characteristics of actively-managed portfolios.
EIA scores each security based on the IFED methodology; allowing clients to create customized indexes comprised of securities that are optimally positioned for the current monetary environment. IFED scores can also be used to identify securities that are poorly suited for the current environment, providing opportunities for shorting.