Our Products are Antifragile Indices
Our indices reflect three particular dynamic investment portfolio construction strategies powered by proprietary Dominant Factor™ Index methodology.
For each strategy, the objective is to produce, within its class and investment horizon, competitive returns and to provide superior downside risk protection when markets are in distress. All indices are built out of the the same universe of pre-selected liquid US Exchange-traded ETFs.
Relatively safe, short term
Description: an equity-boosted alternative to a Money Market account Investment horizon: short to medium term
Maximum Drawdown: less than 4% in back-testing over 20 years
Composition: 40 best performing ETFs are selected based on proprietary risk-reward profile.
Constituent Weights: risk-based. A limit on total equity ETF risk. A floor for cash-like ETFs’ risk.
Safer than the market, long term
Description: A safer alternative to a long-term investment in broad equities market (e.g., such as S&P 500)
Investment horizon: medium to long term
Maximum Drawdown: comparable to broad market in normal times; a fraction of the market in severe crisis
Composition: borrows constituents from DataSave but reweighs them
Constituent weights: more weight is allocated to equity constituents.
May result in zero weights for cash-like ETFs.
AIDA stands for AI-Driven Antifragile strategy: it has all the smart gamma properties of DataSave and DataGrow but also exhibits strong alpha
AIDA vs. DataGrow™: more risk, with significant alpha
While DataGrow’s selection favors funds with a low SVaR (Stress Value-at-Risk, i.e. the worst risk stemming from one of the "dominant factors"), even if the performance is not so great, AIDA selection is principally based on the LTA (the Long-term Alpha (LTA) is the average long-term performance of the fund, as extrapolated over 20+ years history, using the various "dominant factors")
The consequence of this selection is that AIDA favors funds that offer good alpha expectations
AIDA: safer than the market, long term + alpha
Description: A safer alternative to a long-term investment in broad equities market and many hedge funds
Investment horizon: long term
Maximum Drawdown: comparable to broad market in normal times; significantly lower than market in severe crisis, and recovering faster
Composition: borrows constituents from DataSave™ and DataGrow™ but reweighs them
Constituent weights: more weight is allocated to equity constituents. May result in zero weights for cash-like ETFs.