Years of Peer-Reviewed Research Underly IFED Strategy
Years of Superior Alpha and Downside Risk Metrics with Live IFED Indexes
Assets Track IFED Indexes
IFED Indexes Track the US Equity Market
EIA's Index Offerings:
Outperformance (Annual Alpha) by Holding Period
Holding Period | IFED-LG (vs S&P 500) | IFED-M (vs S&P MidCap 400) | IFED-S (vs S&P SmallCap 600) | IFED-LV (vs S&P 500 Low Volatility) |
|---|---|---|---|---|
Full Period (1/1999-1/2025) | 10.62% | 8.86% | 8.07% | 4.10% |
20 Years | 6.81% | 5.66% | 4.84% | 4.05% |
10 Years | 6.60% | 7.38% | 7.27% | 5.87% |
5 Years | 8.19% | 7.24% | 13.88% | 7.37% |
3 Years | 4.66% | 4.76% | 11.90% | 5.16% |
1 Year | 3.41% | 3.53% | 9.18% | 1.73% |
3 Months (not annualized) | 5.52% | 5.26% | 6.87% | 4.32% |
1 Month (not annualized) | 2.84% | 1.73% | 2.55% | 1.40% |
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 market 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 first live client-customized 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, EIA maintains the following 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)
