IskraIndex Portfolio: Nasdaq-100 Alternative

Nasdaq-100... A symbol of the technological breakthrough of the late 20th century. Over its 40-year history, it has experienced so many spectacular rises and falls that even a person far from investing could trace the stages of technological progress over recent decades through them. Being one of the leaders in returns among all U.S. stock indices, the Nasdaq-100 required a very high price for investing in it - market crashes always hit this index hardest, costing millions of investors both money and peace of mind. Nevertheless, during growth periods, this index has always been an easy-to-sell showcase of the American stock market, and the same millions of investors gladly poured money into it — both directly and through hundreds of derivative investment products.

However, the IskraIndex methodology has made it possible to create a broadly diversified alternative to the Nasdaq-100 that outperforms it in terms of returns while carrying significantly lower risk — and without even buying an ETF tracking that index. The high Sharpe ratios of the IskraIndex portfolios allow for effective leverage, while the low risk of the underlying strategies keeps the risk of the leveraged portfolio in check. The IskraIndex: Nasdaq-100 Alternative portfolio is a 50% leveraged Deposit+ Balanced portfolio.

Backtest based on closing prices, with monthly rebalancing

At a 9% leverage interest rate the IskraIndex: Nasdaq-100 Alternative portfolio has delivered an average annual excess return of 5 percentage points over the last 7 years, while maintaining an average risk level 30% lower than that of the Nasdaq-100 index. At the same time, the maximum drawdown of the leveraged portfolio turned out to be nearly half that of the unleveraged index. The lower the interest rate, the higher the performance this strategy will deliver.

The Nasdaq-100 Alternative portfolio offers the opportunity to achieve higher returns with lower risk, without complicating your life by delving into questions like how deep and how long artificial intelligence has come to us, or how successful the procedure of bioprinting human organs will prove to be. Why play the stock market casino when you can achieve better results through sensible diversification and modest leverage applied to a sufficiently conservative portfolio?

An example of the IskraIndex model portfolio report that investors receive can be viewed here.

- Subscription details -