NYSE® Zebra Edge® Index
A behavioral finance strategy designed to provide consistent returns
- Objective – Aims to achieve higher returns with less risk than a traditional large-cap equity strategy
- Approach – Behavioral finance selection
- Holdings – U.S. large-cap equities, U.S. Treasuries, cash
- Features – Equity portfolio drawn from the 500 largest publicly traded U.S. companies1
- Ticker – ZEDGENY
Helpful Resources
“Behavioral finance could be the key to higher returns with less risk.”
Roger G. Ibbotson, PhD.
- Chairman and Director of Research, Zebra Capital Management, LLC
- Professor in the Practice Emeritus of Finance, Yale School of Management
- Founder of Ibbotson Associates, now a Morningstar Company
Zebra equity selection process
The NYSE® Zebra Edge Index applies a risk control methodology that can make daily adjustments to the allocation between having a leveraged exposure to Zebra Equities, U.S. Treasuries* and an interest-free cash account. This daily reallocation is designed to further reduce risk by targeting a volatility level of 5%. While this can lessen the impact of market downturns, it may also limit upside po*tential.
*U.S. Treasuries are tracked through U.S. Treasury futures.
Sector breakdown & index weighting
Zebra Capital Management, LLC is an independent investment management firm managing equity-focused investment strategies. Founded in 2001 by Roger Ibbotson, Professor Emeritus of Finance at Yale University, Zebra has successfully combined his leading-edge research and scientific methods with decades of direct trading, risk management, and operational experience. Zebra’s strategies seek to generate superior performance without incurring additional volatility.