Within the "Idea" product line, IskraIndex offers portfolios that limit exposure to "hot" assets by diversifying risk through an optimal combination of IskraIndex ETFs. "Hot" stories often cool down suddenly and unexpectedly, leading to losses of both time and capital. Another distinctive feature of such assets is their extremely high volatility. Capping the share of a "hot" asset in a portfolio helps limit investor risk: during periods of decline or stagnation, the portfolio's performance is supported by a diversified combination of asset-class ETFs.
The IskraIndex "Idea" portfolios are model portfolios that combine a specific long-term investment idea with the IskraIndex Deposit+ portfolio. The optimization condition requires the constant presence of the corresponding idea in the portfolio with a minimum weight of 10%. The "Idea" product line also includes leveraged Deposit+ portfolios. The underlying investment ideas and their corresponding "Idea" portfolios are as follows:
Portfolios in the "Idea" line are best suited for risk-seeking investors, even though their drawdown levels remain consistent with traditional balanced (moderate) portfolios. This suitability arises because including an individual idea in a portfolio with any fixed weight - even the minimum - introduces the specific risk of a non-index instrument, which generally increases the portfolio's overall risk profile.
Why IskraIndex: Idea Portfolio could be interesting to an investor?
Every investment idea—even one that is index-based—carries certain systematic and specific risks over the long term. Market crises, technological shifts, corporate governance failures, and even outright fraud can wipe out an investment's value or disrupt a long-standing upward trend. Lost time remains the most critical damage in the investment process, as it can never be recovered.
This is precisely why limiting the risk of individual investment ideas and combining them with a broadly diversified portfolio, such as Deposit+, is the optimal long-term strategy. If an investor's idea fails, their losses are capped and offset by the remainder of the portfolio. This allows investors to calmly shift their focus or fully transition into the underlying diversified portfolio.
This can be demonstrated with a number of specific examples, one of the most prominent being the following.
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A Case Study: ARKK In early 2021, financial media were discussing the collapse of the technology fund ARKK, managed by "star" investor Cathie Wood. Over the four years prior, the fund had grown by an average of 65% annually. However, by the end of March 2023, ARKK's average return since the end of 2017 had fallen to zero, reflecting a massive decline during 2021–2022 (a 4.5 times drop, or 77%). More on the story of Cathie Wood and ARKK Over the same period (2021–2022), the conservative IskraIndex Deposit+ portfolio grew by 9.5%. If, at the end of 2020, at ARKK's peak, an investor had combined (even without optimization) investments in ARKK, capping them at 20%, with the Deposit+ Conservative portfolio making up the remaining 80%, then over this period the combined portfolio would have lost 8%, staying within reasonable loss limits and preserving the potential for a quick recovery:
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