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Economic Index Associates (EIA) and Nasdaq are pleased to introduce the Nasdaq IFED US Large-Cap Index (Nasdaq IFED-L). Nasdaq IFED-L represents a new partnership on the IFED-L index, which EIA launched on June 9, 2020.
Nasdaq IFED-L uses a combination of Federal Reserve policy signals and 12 key firm metrics to select approximately 75 large-cap U.S. stocks via a rules-based active strategy. To seek outperformance and avoid holding a portfolio that has become out-of-favor, the IFED strategy relies on Federal Reserve policy signals to assign environment-appropriate weights to the 12 firm metrics. With over 30 years of published research, EIA’s founders are the authorities on the association of Fed policy signals and security returns. The efficacy of the IFED approach is supported by Nasdaq IFED-L’s 17.31% total alpha vs the S&P 500 since its launch over two years ago. Since its launch (to June 30, 2022), Nasdaq IFED-L has been the best performing large-cap equity index. YTD 2022, the index has outperformed the S&P 500 by 10.93%. The index has also produced an impressive average annual alpha of 7.56% over its 22+ year back-tested history.