FAQ

1. Is IskraIndex an investment advisor?

IskraIndex positions itself as a technical service specializing in portfolio optimization. For the general audience, IskraIndex offers non-personalized portfolios optimized within the framework of basic strategies. IskraIndex does not request any information from clients other than an email address. Such activity does not require licensing.
If a client requires individual portfolio optimization, IskraIndex suggests that the client contact a partner company in the European Union. This partner company holds a license for investment advisory activities and is able to utilize the mathematical methodologies of IskraIndex.

2. Does IskraIndex determine the client's risk profile?

No, because it does not request any information from the client. The client can only take an indicative test in their personal account, which will roughly show their level of conservatism or aggressiveness.

3. In which countries can the IskraIndex solution be used?

Any person with a brokerage account that has access to global markets can subscribe and follow the model portfolios of IskraIndex.

4. Is it necessary to transfer money to IskraIndex for portfolio management?

No. One of the key advantages of the IskraIndex solution is that the investor retains full control over their funds, managing them through their own brokerage account, and does not entrust them to anyone else.

5. What is the fundamental difference between the IskraIndex service and the American services Betterment and Wealthfront?

All of the mentioned services offer solutions based on model portfolios consisting of index ETFs. This is the only thing they have in common. Betterment and Wealthfront offer index portfolios under a discretionary management model, which requires transferring client funds to these companies' accounts. The IskraIndex model involves the investor independently following the company's model portfolio via their own brokerage account.

IskraIndex relies on a broader set of ETFs (asset classes), its own portfolio optimization and construction methodology, as well as a risk management system. The main thesis that IskraIndex seeks to convey to investors is that the flip side of the extremely low cost of Betterment and Wealthfront's robo-advising is the low quality of their investment portfolios. You can learn more about the comparison of the aforementioned services here.

6. How to get access to the Iskra Index model portfolios?

To do this, you need to subscribe to the IskraIndex service on the website or via the Telegram channel. After payment, you will receive registration details to access your personal account, where the entire history of each portfolio in the respective Iskra Index lineup is saved. Furthermore, the company will duplicate this information to the client's email.

7. Is it possible to optimize a personal portfolio using the IskraIndex methodology?

Yes. However, in this case, IskraIndex will refer the client to a partner company within the European Union that holds a license for investment advisory activities and is authorized to utilize the mathematical methodologies of IskraIndex.

8. How often are IskraIndex portfolios rebalanced?

Once a month or in case of market-stress events.

The basic option involves a subscription cost of $89 per month. However, the cost is lower with advance payment – 10% off for a year paid in advance, 20% off for two years paid in advance.