METHOD OF COMBINING DEMOGRAPHY, MONETARY POLICY METRICS, AND FISCAL POLICY METRICS FOR SECURITY SELECTION, WEIGHTING AND ASSET ALLOCATION

摘要

A system, method and computer program product may combine metrics, and may use metrics to select or weight an index, select or weight a portfolio of financial objects, or be used to perform asset allocation. Financial and non-financial metrics may be used. Metrics based on accounting data, or other non-price metrics such as, e.g., demography, monetary policy metrics, and/or fiscal policy metrics, may be used. A combination of metrics may be used. Indexes may be built with combinations of metrics other than market capitalization weighting, price weighting or equal weighting. Once built, an index may be used as a basis to purchase securities for a portfolio. Specifically excluded are widely-used capitalization-weighted and price-weighted indexes, in which price of a security contributes in a substantial way to calculation of weight of that security in the index or the portfolio, and equal weighting weighted indexes. Indexes may be constructed to minimize volatility.