HK1109810A - Non-capitalization weighted indexing system, method and computer program product - Google Patents

Description

Non-capitalization weighted index systems, methods, and computer program products

Technical Field

The present invention pertains generally to securities investment and, more particularly, to the construction and use of passive portfolios and indices.

Background

Conventionally, stock portfolio management has a wide variety of categories. One category of traditional portfolio management of securities is active management, where economic, financial, credit, and/or business analysis is based; based on the technical trend; the securities are individually selected for a portfolio based on a periodic pattern, or the like. Another traditional classification is passive management, also known as indexing, in which securities in a portfolio duplicate those that make up an index. The securities in a passively managed portfolio are generally weighted according to the associated market capitalization weighting or average weighting. Another intermediate category of traditional portfolio management of securities, in which the characteristics, performance and holding of the portfolio are essentially dominated by the characteristics, performance and holding of the index, but deviate from the index by incorporating appropriate active management, is known as enhanced indexing.

The present invention relates generally to a passive and enhanced indexing portfolio management category. The purpose of the securities market index is to reflect the overall market or market segment. Index-based passive portfolios may also reflect an entire market or market segment. Often a passive portfolio holds every security in the index. Statistical models are sometimes used to generate a profile (profile), risk characteristics, performance characteristics, and portfolio of securities weights for a replication index, without actually possessing each security included in the index. (e.g., portfolios based on the Wilshire 5000 Equisity index or the Lehman Aggregate Bond index.) sometimes statistical models are used to generate the index itself to replicate the profiles, risk characteristics, performance characteristics, and security weightings of an entire class of securities. (the Lehman Aggregate Bond index is an example in this respect.)

The indices generally include all of the securities within the market or market segment they define. In most cases, the index may include a proportion of each security that moves its market capitalization toward the full market capitalization of all of the included securities. The only common exceptions to market capitalization weighting are the included average weighting of the securities (e.g., Value Line index or Standard & Poors 500 average weighted stock index, which includes all stocks within S & P500 on a list basis; providing an average weighting for each stock on the day specified each year) and the share price weighting, where the share prices are simply added and divided by a simple divisor (e.g., Dow Jones industrial average index). In general, passive portfolios are based on an index weighted by one of market capitalization weighting, average weighting, and share price weighting.

The advantages of passive investments include: maintaining low transaction costs for portfolios because only the index is turned around when reorganized, typically once a year; low management costs for portfolios because there is no need to analyze individual securities; and portfolios are not lost due to misjudgment of the individual correct choices-relative to the market or market segment reflected by the index.

The advantages of using market capitalization weighting as a basis for passive portfolios include: the index (and thus the portfolio established thereon) remains continuously 'balanced' as the market price of the included securities changes, and the portfolio performance participates in (i.e., reflects) the market or market segment of the securities included in the index.

The disadvantage of market capitalization weighted negative indices (which can be severe) is focused on the fact that: any under-valued securities are under-weighted in the index and related portfolio, while any over-valued securities are over-weighted. Likewise, portfolio weighting based on market capitalization varies with each market (or segment) prosperity and each market breakout. Finally, in general, portfolio security selection is not based on criteria that reflect better chances of appreciation than the market or market segment as a whole.

Disclosure of Invention

One exemplary embodiment of the present invention is directed to a new method, system, and computer program product for passive investing based on an index established using a metric other than market capitalization weighting, share price weighting, or average weighting. Among these metrics are various financial data for the company that issued the securities, including but not limited to: book value, sales, revenue, profit, earnings per share, income growth rate, stock dividends, dividends per share, interest deductions, taxes, profits before depreciation and amortization, etc. In another exemplary embodiment, other non-financial and non-market capitalization metrics may also be used as the basis for compiling the index, such as, but not limited to: index of companies that graduated from the Chief Executive Officer (CEO) of a particular university.

Exemplary embodiments of the present invention include a common element that completely departs from the conventionally available form of index construction, in that the index of the present invention is "valuation independent". That is, the traditional index does not take into account classical valuation ratios, which makes the traditional index naturally tend to over-weight higher valued securities while under-weighting lower valued securities in a combination of traditional index and assets based on securities. While this also applies to the average weighting, we exclude the already existing (and not important) exceptions.

The use of these non-market capitalization metrics in accordance with exemplary embodiments of the present invention allows the index structure and thus the resulting passive portfolio to better reflect the economic size and/or long-term growth potential of individual securities within a market or market segment than traditional portfolio weighting, share price weighting, or average weighting. The non-market gross balance metrics according to exemplary embodiments of the present invention allow the index structure and resulting negative portfolios to provide an investor who wishes to participate in the market or market segment with a selection of negative portfolio scenarios with different risk profiles. Based on the above indices and portfolios, these additional benefits are provided while maintaining the traditional benefits of passive investing, according to an exemplary embodiment of the present invention. In historical examination, these non-market capitalization metrics were found to outperform traditional capitalization weighted indices over extended periods with similar or lower portfolio risk.

In general, the availability of non-market capitalization indexes, and passive enhanced index portfolios based on them, have the potential to reduce investment costs by more widely using low-cost passive enhanced index investments. The present invention has the potential to improve the return on investment relative to the securities market by utilizing a securities weighting framework that does not over-emphasize the natural tendency to price higher securities and to undervalue securities. The present invention also has the potential to reduce volatility of portfolios by utilizing security weighting criteria that reflect less "unreasonable growth". Exemplary embodiments of the present invention also have the potential to provide 'custom' passive capital combinations, as each metric may have its own specific performance and risk characteristics.

Exemplary embodiments of the present invention disclose a system, method and computer program product for constructing a non-capitalization weighted portfolio of assets. In an exemplary embodiment, the method may include: (a) collecting data about a plurality of assets; (b) selecting a plurality of assets to create an index of assets; and (c) weighting each of the plurality of assets selected in the index based on the objective measure of scale of each of the plurality of assets, wherein weighting comprises: (i) weighting at least one asset of the plurality of assets; and (ii) weighted in ways other than based on market capitalization weighting, average weighting, and/or share price weighting.

In one exemplary embodiment, (c) may include weighting each of a plurality of assets, wherein each asset includes: stock; a commodity; a futures contract; a bond; mutual fund; a benefit fund; a fund of the fund; exchange Traded Funds (ETF); a derivative; or a negative weighting of any asset.

In one exemplary embodiment, (c) may include weighting each of a plurality of assets, where each asset may include a stock.

In one exemplary embodiment, (c) may include weighting each of a plurality of assets, wherein each asset may include a commodity.

In one exemplary embodiment, (c) may include weighting each of a plurality of assets, where each asset may include a futures contract.

In one exemplary embodiment, (c) may include weighting each of a plurality of assets, wherein each asset may include a bond.

In one exemplary embodiment, (c) may include weighting each of the plurality of assets, wherein each asset may include a mutual fund.

In one exemplary embodiment, (c) may include weighting each of the plurality of assets, wherein each asset may include a mutual fund.

In one exemplary embodiment, (c) may include weighting each of the plurality of assets, wherein each asset may include a arbitrage fund.

In one exemplary embodiment, (c) may include weighting each of the plurality of assets, wherein each asset may include a fund of funds.

In one exemplary embodiment, (c) may include weighting each of the plurality of assets, wherein each asset may include an Exchange Traded Fund (ETF).

In one exemplary embodiment, (c) may include weighting each of the plurality of assets, wherein each asset may include a derivative.

In one exemplary embodiment, (c) may include a negative weighting for any asset.

In one exemplary embodiment, the negative weighting may be performed for at least one of the following purposes: the performance of at least one of any security, portfolio of assets, arbitrage fund, or multi-/empty head is established or measured.

In one exemplary embodiment, (c) may include weighting based on an objective measure of scale, wherein the objective measure of scale may include a measure of company scale associated with each of the plurality of assets.

In an exemplary embodiment, the measure of company size may include one or more of: income totals, sales, earnings before interest and tax deductions (EBIT), earnings before interest, tax deductions, depreciation and contribution (EBITDA), employee numbers, book value, assets, liabilities, and/or net capital value.

In one exemplary embodiment, (c) may include weighting based on an objective measure of scale, wherein the objective measure of scale includes a measure related to the subject capital itself.

In one exemplary embodiment, an asset may comprise an autonomous region, an autonomous region that issues a liability, or a commodity.

In an exemplary embodiment, the objective measure of scale associated with an asset may include one or more of: income, interest rate, sales amount, total sales amount, foreign sales amount, domestic sales amount, net sales amount, gross sales amount, profit rate, gross profit in business, unallocated profit, earnings per share, ledger value adjusted by inflation of currency, ledger value adjusted by replacement cost, ledger value adjusted by liquidation value, stock dividend, asset, tangible asset, intangible asset, fixed asset, property, factory, equipment, reputation, asset replacement value, asset liquidation value, debt, long-term debt, short-term debt, net capital value, research and development costs, accounts receivable, interest, tax, dividend and profit before amortization (ITEBDA), accounts payable, goods sales Costs (CGS), debt ratio, capital, cash, direct human cost, indirect plant cost, business, sales budget, inventory methods, stock supply types, liquidity, ledger revenue, tax revenue, revenue capitalization, reputation capitalization, interest capitalization, business income capitalization, capital expenditure, cash, claim, employee turnover, indirect manufacturing cost, credit rating, growth rate, tax rate, corporate clearing value, cash capitalization, profit capitalization, business income capitalization, cash flow, and/or future value of desired cash flow.

In one exemplary embodiment, (c) may include weighting each asset in the index based on an objective measure of scale, wherein the objective measure may include a ratio of any combination of the objective measures of scale of the asset other than ratios based on weighting the assets based on market capitalization, average weighting, or share price weighting.

In an exemplary embodiment, the ratio of any combination of objective measures of scale may include one or more of: the liquidity ratio, the debt ratio, the percentage of indirect charges to sales, and/or the debt repayment burden ratio.

In one exemplary embodiment, the objective measure of scale may include a demographic measure of the asset.

In an exemplary embodiment, the demographic measure of scale may include one or more of: employees, floor space, office space, location, and/or other asset demographics.

In one exemplary embodiment, the measure of company size may include one or more asset demographic measures.

In one exemplary embodiment, the asset demographic metrics may include one or more of: non-financial metrics, non-market related metrics, large numbers of employees, floor space, office space, and/or other asset demographics.

In one exemplary embodiment, (c) may include weighting based on an objective measure of scale, wherein the objective measure of scale may include a geostatistical measure.

In one exemplary embodiment, the geostatistical metrics may include geostatistical metrics other than Gross Domestic Product (GDP) weighting.

In an exemplary embodiment, the method may include a passive investment method, which may include: an asset portfolio of assets is constructed from the indices.

In an exemplary embodiment, a portfolio of assets can include one or more of: a fund; mutual fund; a fund of the fund; an asset account; exchange Traded Funds (ETF); separate accounts, aggregate trust; and/or limited partnerships.

In one exemplary embodiment, the method may further include: selecting a plurality of assets for trading according to the index; and trading one or more of the plurality of assets based on the weighting of the index.

In one exemplary embodiment, the transaction may include: the portfolio is again balanced based on the index.

In one exemplary embodiment, rebalancing may include: periodically re-equilibrating.

In one exemplary embodiment, rebalancing may include: rebalancing is performed based on the assets reaching the threshold.

In an exemplary embodiment, the method may further include applying a rule associated with the index.

In one exemplary embodiment, the method of constructing a non-market capitalization weighted portfolio can be used for one or more of: investment management, and/or investment portfolio benchmarking.

In an exemplary embodiment, the method may include an enhanced index investing method. The method may include constructing a portfolio of assets in a manner wherein at least one of holding, performance, or characteristics is substantially similar to the index.

In an exemplary embodiment, the method may be a computer-implemented method and (a) may include: data is collected using a computerized database.

In one exemplary embodiment, (c) may include weighting based on the non-market capitalization financial metric associated with each of the plurality of assets and the non-financial metric associated with each of the plurality of assets.

In another exemplary embodiment, a system for constructing a non-capitalization weighted portfolio of assets can comprise: means for gathering data about a plurality of assets; means for selecting a plurality of assets to create an index of assets; and means for weighting each of the plurality of assets selected in the index based on the objective measure of scale of each of the plurality of assets, wherein the weighting means may comprise: means for weighting at least one of the plurality of assets; and means for weighting in a manner other than a weighting based on at least one of market capitalization weighting, average weighting, or share price weighting.

In another exemplary embodiment, a non-capitalization weighted portfolio of assets construction system can comprise: a processor adapted to gather information regarding a plurality of assets; an index adapted to select a plurality of assets to create an asset; adapted to weight each of the plurality of assets selected in the index based on an objective measure of scale of each of the plurality of assets; adapted to weight at least one asset of the plurality of assets; and is adapted to be weighted in a manner other than weighted based on at least one of market capitalization weighting, average weighting, or share price weighting. .

In another exemplary embodiment, a machine-readable medium that when executed by a computer platform provides instructions to cause the computer platform to perform operations may include a method of constructing a non-capitalization weighted portfolio of assets, the method may include: (a) collecting data about a plurality of assets; (b) selecting a plurality of assets to create an index of assets; and (c) weighting each of the plurality of assets selected in the index based on the objective measure of scale of each of the plurality of assets, wherein the weighting comprises: (i) weighting at least one asset of the plurality of assets; and (ii) weighted in a manner other than based on at least one of market capitalization weighting, average weighting, or share price weighting.

Further features and advantages of the invention, as well as the structure and operation of various embodiments of the invention, are described in detail below with reference to the accompanying drawings.

Drawings

The foregoing and other features and advantages of the invention will be apparent from the following, more particular description of exemplary embodiments of the invention, as illustrated in the accompanying drawings. In the drawings, like reference numbers generally indicate identical, functionally similar, and/or structurally similar elements. The drawing in which an element first appears is indicated by the leftmost digit(s) in the corresponding reference number. Preferred exemplary embodiments are discussed below in the detailed description of the following figures:

FIG. 1 is a deployment diagram of an index generation and usage process in accordance with an exemplary embodiment of the present invention;

FIG. 2 is a process flow diagram of an index generation process in accordance with an exemplary embodiment of the present invention;

fig. 3 is a process flow diagram of an index usage process in accordance with an exemplary embodiment of the present invention.

Detailed Description

Various exemplary embodiments of the invention, including preferred embodiments, are discussed in detail below. While specific embodiments are discussed, it should be understood that this is done for illustrative purposes only. A person skilled in the relevant art will recognize that other components and configurations can be used without parting from the spirit and scope of the invention.

FIG. 1 depicts an exemplary deployment diagram of an index generation and usage process in accordance with an exemplary embodiment of the present invention. According to this exemplary embodiment, an analyst may utilize a computer system to generate an index. The analyst may also utilize the analysis software to test data regarding entities that provide different types of securities that the investor may trade to generate an index. One example of an entity that may provide securities may be a publicly held company that trades stocks on an exchange. However, the invention is also applicable to any of the following entities: having any type of stock that can be traded where information about the entity and/or its securities is available (or can be made available) for analysis.

In one exemplary embodiment, once the analyst utilizes the entity data to generate an index, the index may be used to construct an investment portfolio. The investor, consultant, manager or broker may then manage the purchased securities as a mutual fund for a large number of individual and organizational investors. Alternatively, the purchased securities may be managed for one or more investors. In the latter case, securities may be purchased based on an index for placement into a portfolio of individual or organizational investors.

FIG. 2 depicts an exemplary process flow diagram of an index generation process in accordance with an exemplary embodiment of the present invention. In one exemplary embodiment, to generate an index, an analyst using analysis software may access entity data about various entities having securities that are traded. For example, publicly traded companies must disclose information about certain financial aspects of their operations. Such information may be aggregated for a large number of entities. The aggregated data can then be utilized to identify and generate market segments and corresponding indices.

In somewhat more detail, the index may be generated by normalizing the entity data for a particular non-market capitalization metric. In one exemplary embodiment, the normalized entity data may be used to generate a weighting function that describes the contribution of each entity to the business sector determined by the metric. The index is generated using a weighting function. Once an index is generated, the index may be used to track business divisions determined by the metric, or to create portfolios of securities offered by entities whose information was used to generate the index, according to an exemplary embodiment.

For example, in an exemplary embodiment of the invention, a method of constructing a non-capitalization weighted portfolio asset may comprise: for example, gathering data about various assets; selecting a set of assets to create an index of the assets; and weighting each asset in the group of assets selected in the index based on an objective measure of the size of each member in the group of assets, wherein the weighting may include weighting all or a subset of the group of assets and weighting based on market capitalization, average weighting, or share price weighting.

In one exemplary embodiment, weighting each member of the group of assets may include weighting assets of any of a variety of types. Examples of various types of assets may include, but are not limited to: for example, the type of stock; a type of the commodity; a futures contract type; a type of bond; a mutual fund type; a hedge fund type; the type of fund (fund of funds) in the fund; exchange Traded Fund (ETF) type; and derivative type assets. The weighting may also include, but is not limited to, negatively weighting any of the various types of assets, for example.

According to an exemplary embodiment of the present invention, the index may be weighted based on an objective measure of scale, which may include a measure related to the subject asset (underpingasset) itself. The assets may include an autonomous region, an autonomous region that issues a debt, or a commodity. The objective measure of scale associated with an asset may include any combination of: income, interest rate, sales amount, total sales amount, foreign sales amount, domestic sales amount, net sales amount, gross sales amount, profit rate, gross profit in business, unallocated profit, earnings per share, ledger value adjusted by inflation of currency, ledger value adjusted by replacement cost, ledger value adjusted by liquidation value, stock dividend, asset, tangible asset, intangible asset, fixed asset, property, factory, equipment, reputation, asset replacement value, asset liquidation value, debt, long-term debt, short-term debt, net capital value, research and development costs, accounts receivable, income from which interest, taxes, dividends and earnings before amortization (ITEBDA), accounts payable, goods sales Costs (CGS), debt ratios, capital, cash, direct human costs, indirect costs of factory, business, sales budget, inventory methods, stock supply types, liquidity, ledger revenue, tax revenue, revenue capitalization, reputation capitalization, interest capitalization, business income capitalization, capital expenditure, cash, claim, employee turnover rate, indirect manufacturing cost, credit rating, growth rate, tax rate, corporate clearing value, cash capitalization, revenue capitalization, business income capitalization, cash flow, and/or future value of desired cash flow.

Ratios may also be utilized. In one exemplary embodiment, the weighting of the assets in the index based on the objective measure of scale may include a ratio of any combination of the objective measures of scale of the assets other than a ratio based on weighting the assets based on market capitalization, average weighting, or share price weighting. For example, the ratio of any combination of objective measures of scale may include, but is not limited to: such as the liquidity ratio, the liability ratio, the percentage of indirect costs to sales, or the liability repayment burden ratio.

In an exemplary embodiment, a portfolio of assets may include, but is not limited to, one or more of the following: for example, gold; mutual fund; a fund of the fund; an asset account; exchange Traded Funds (ETF); discrete accounts, aggregated trust (popped trust); or limited partnerships.

In an exemplary embodiment, the measure of company size may include one or a combination of one or more of the following: total revenue of business, sales, income, earnings before interest and tax deductions (EBIT), earnings before interest, tax deductions, depreciation and amortization (EBITDA), number of employees, book value, assets, liabilities, or net capital value.

In one exemplary embodiment, the company size metric may include a demographic metric of the asset. The asset demographic metric may include one or any combination of one or more of the following: for example, non-financial metrics, non-market related metrics, large numbers of employees, floor space, office space, or other demographic metrics of the asset.

In one exemplary embodiment, the weighting may be based on an objective measure of scale, wherein the measure may include a geographic measure. The geographic metrics in one exemplary embodiment may include geographic metrics other than Gross Domestic Product (GDP) weighting.

FIG. 3 depicts an exemplary process flow diagram of an index usage process in accordance with an exemplary embodiment of the present invention. According to one exemplary embodiment, an index may be received from an index generation process and used to determine characteristics and quantities of securities purchased for a portfolio. A security may be purchased from an exchange or other market and may be held by an investor or group of investors' accounts. According to an exemplary embodiment, the index may be upgraded, for example, but not limited to, on a periodic basis, and may be used as a basis for rebalancing portfolios. According to another exemplary embodiment, the portfolio may be rebalanced, for example, when a predetermined threshold is reached. In this way, a portfolio can be created and maintained based on a non-market capitalization index.

Rebalancing may be based on assets reaching a threshold condition or value. For example, but not by way of limitation, rebalancing can occur when a threshold is reached, such as "when the market price of a portfolio of assets is increasing by 20%", or "when assets within a portfolio sub-category are beyond 32% of the portfolio scale," or "when U.S. president is elected from a political party other than the incumbent political party," and so forth.

The present invention (possibly with non-market capitalization weighted portfolios in the exemplary embodiment) may be used for investment management, or investment portfolio benchmarking.

An exemplary embodiment of the present invention may be implemented on a computer device, processor, computer and/or communication device.

In an exemplary embodiment, the computer may include one or more Central Processing Units (CPUs) or processors, which may be coupled to a bus. The processor may access main memory, for example, via a bus. The computer may be coupled to an input/output (I/O) subsystem such as, but not limited to: a Network Interface Card (NIC), or a modem for accessing a network. The computer may also be coupled to the secondary memory directly via a bus, or via the primary memory, for example. The secondary memory may include, for example, but is not limited to: a disk storage unit or other storage medium. Example disk storage units may include, but are not limited to: a magnetic storage device such as a hard disk, an optical storage device such as a Write Once Read Many (WORM) drive, or a Compact Disc (CD), or a magneto-optical device. Other types of secondary storage may include: removable disk storage devices may be used in conjunction with removable storage media, such as CD-ROMs or floppy disks. In general, a disk storage unit may store an application program for operating a computer system, which is generally referred to as an operating system. The disk storage unit may also store a document (not shown) of the database. The computer may interact with the I/O subsystem and disk storage unit via a bus. The bus may also be coupled to a display for output and to input devices such as, but not limited to: a keyboard and a mouse or other pointing/selection device.

In this document, the terms "computer program medium" and "computer-readable medium" may be used to generally refer to media such as, but not limited to, removable storage drives, hard disks installed in hard disk drives, and signals. These computer program products may provide software to a computer system. The present invention may be directed to such computer program products.

References to "one embodiment," "a particular embodiment," "example embodiment," "various embodiments," etc., may indicate that the embodiment of the invention so described may include a particular feature, structure, or characteristic, but every embodiment may not necessarily include the particular feature, structure, or characteristic. Moreover, repeated use of the phrases "in one embodiment" or "in an exemplary embodiment" does not necessarily refer to the same embodiment, although it may.

In the following description and claims, the terms "coupled" and "connected," along with their derivatives, may be used. It should be understood that these terms are not intended as synonyms for each other. Rather, in particular embodiments, "connected" may be used to indicate that two or more elements are in direct physical or electrical contact with each other. "coupled" may mean that two or more elements are in direct physical or electrical contact. However, "coupled" may also mean that two or more elements are not in direct contact with each other, but yet still co-operate or interact with each other.

An algorithm is here, and generally, considered to be a self-consistent sequence of acts or operations leading to a desired result. These include physical manipulations of physical quantities. Usually, though not necessarily, these quantities take the form of electrical or magnetic signals capable of being stored, transferred, combined, compared, and otherwise manipulated. It has proven convenient at times, principally for reasons of common usage, to refer to these signals as bits, values, elements, symbols, characters, terms, numbers, or the like. It should be understood, however, that all of these and similar terms are to be associated with the appropriate physical quantities and are merely convenient labels applied to these quantities.

Unless specifically stated otherwise as apparent from the following discussions, it is appreciated that throughout the specification discussions utilizing terms such as "processing," "computing," "calculating," "determining," or the like, refer to the action and/or processes of a computer or computing system, or similar electronic computing device, that manipulate and/or transform data represented as physical, such as electronic, quantities within the computing system's registers and/or memories into data similarly represented as physical quantities within the computing system's memories, registers or other such information storage, transmission or display devices.

Similarly, the term "processor" may refer to any device or portion of a device that processes electronic data from registers and/or memory to transform that electronic data into other electronic data that may be stored in registers and/or memory. A "computer platform" may include one or more processors.

Embodiments of the present invention may include apparatuses for performing the operations herein. An apparatus may be specially constructed for the intended purposes, or it may comprise a general-purpose device selectively activated or reconfigured by a program stored in the device.

While various embodiments of the present invention have been described above, it should be understood that they have been presented by way of example only, and not limitation. Thus, the breadth and scope of the present invention should not be limited by any of the above-described exemplary embodiments, but should be defined only in accordance with the following claims and their equivalents. Although the present invention has been particularly shown and described with reference to preferred embodiments, it will be understood by those skilled in the art that various changes in form and detail may be made therein without departing from the spirit and scope of the invention.

Claims (40)

1. A method of constructing a non-capitalization weighted portfolio of assets, comprising:

(a) collecting data about a plurality of assets;

(b) selecting a plurality of assets to create an index of assets; and

(c) weighting each of the plurality of assets selected in the index based on an objective measure of scale of each of the plurality of assets,

wherein the weighting comprises:

(i) weighting at least one asset of the plurality of assets; and

(ii) weighting is performed in a manner other than weighting based on at least one of market capitalization weighting, average weighting, or share price weighting.

2. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises at least one of: stock; a commodity; a futures contract; a bond; mutual fund; a benefit fund; a fund of the fund; exchange Traded Funds (ETF); a derivative; or a negative weighting of any asset.

3. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises a stock.

4. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises a commodity.

5. A method according to claim 1 wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises a futures contract.

6. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises a bond.

7. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises a mutual fund.

8. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises a arbitrage fund.

9. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises a fund of funds.

10. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises an Exchange Traded Fund (ETF).

11. The method of claim 1, wherein said (c) comprises weighting each of said plurality of assets, wherein said each asset comprises a derivative.

12. The method of claim 1, wherein said (c) comprises a negative weighting of any asset.

13. The method of claim 12, wherein the negative weighting is performed for at least one of: the performance of at least one of any security, portfolio of assets, arbitrage fund, or multi-/empty head is established or measured.

14. The method according to claim 1, wherein (c) comprises weighting based on said objective measure of scale, wherein said objective measure of scale comprises a measure of company scale associated with each of said plurality of assets.

15. The method of claim 14, wherein the company size metric comprises at least one of:

the total amount of the income is provided,

the product is sold and sold,

the benefit is that the user can get more profits,

earnings Before Interest and Taxes (EBIT) are deducted,

deducting interest, taxes, depreciation and earnings before amortization (EBITDA),

the number of employees,

the value of the net surface is that,

the asset(s) may be a single asset,

debt, or

Net capital value.

16. The method according to claim 1, wherein said (c) comprises weighting based on said objective measure of scale, wherein said objective measure of scale comprises a measure relating to the subject capital itself.

17. The method of claim 16, wherein the assets include at least one of: an autonomous region, an autonomous region that issues debts, or a commodity.

18. The method according to claim 16, wherein said objective measure of scale associated with said asset comprises at least one of:

the income of the user is as follows,

the benefit rate of the product is increased,

the amount of the sales is,

the total sales volume is the total sales volume,

the amount of sales in foreign countries,

the amount of sales in the country,

the net sales amount is that of the customer,

the amount of the hair sold is,

the profit margin is increased by the amount of the net,

the utility model has the advantages of good business,

the profit that is not allocated is increased,

the income per share is obtained by the following steps,

the value of the account number is set,

because of the account value adjusted by the inflation of the currency,

because the cost-adjusted account value is reset,

due to the adjusted account value of the clearing value,

the stock bonus is that,

the asset(s) may be a single asset,

a physical asset, the physical asset being,

an intangible asset that is to be,

the fixed-asset is a fixed-asset,

the nature of the property is that,

the plant is provided with a plurality of industrial plants,

the equipment is characterized in that the equipment comprises a device,

the reputation of the business is determined,

the value of the asset is reset and the value,

the value of the asset clearance is calculated,

the number of the debt is reduced,

the long-term debt is,

the short-term debt is,

the net value of the capital,

the cost of the research and development is high,

the amount of the account to be collected is calculated,

deducting interest, taxes, dividends and earnings before amortization (EBITDA),

the amount of the accounts payable is,

the cost of sale of the goods (CGS),

the ratio of the debt to the total number of the debt,

the budget of the user is calculated,

the capital budget(s) is (are),

the cash budget is that of the cash budget,

the direct labor cost budget is directly calculated,

the budget of the indirect costs of the plant,

the budget of the service is that of the service,

the budget of the sale is,

a method for stock keeping, which comprises the steps of,

the type of the stock supply is,

the fluidity of the mixture is improved,

the profit of the account book is obtained,

the income of the tax fund is provided,

the capital utilization of the income is realized,

the capital-ization of the business reputation is carried out,

the capital utilization of interest is facilitated,

the business income is capitalized on the capital basis,

the capital expenditure is such that,

in the case of cash, the cash is,

the amount of the claim is reduced,

the rate of flow of the staff member,

the indirect manufacturing cost is the cost of the manufacture,

the rating of the credit is determined by the number of credits,

the rate of increase is such that,

the rate of the tax is determined by the tax rate,

the value of the company is cleared out,

the capital-ization of cash is carried out,

the capital utilization of the profit is realized,

the business income is capitalized on the capital basis,

cash flow, or

Future values of cash flow are expected.

19. The method according to claim 1, wherein said (c) comprises weighting each of said assets in the index based on said objective measure of scale, wherein said objective measure comprises a ratio of any combination of said objective measures of asset scale other than ratios based on weighting assets based on market capitalization, average weighting, or share price weighting.

20. The method according to claim 19, wherein said ratio of any combination of said objective measures of scale comprises at least one of:

the ratio of the flows is such that,

the ratio of the liability to the liability is,

the indirect cost as a percentage of sales, or

Debt paying burden ratio.

21. The method according to claim 16, wherein said objective measure of scale comprises a demographic measure of the asset.

22. The method of claim 21, wherein the demographic measure of scale comprises at least one of:

the number of employees,

the occupied area is small, and the floor area is small,

the area of the office is increased,

position, or

Other asset demographics.

23. The method of claim 14, wherein said measure of company size comprises at least one asset demographic measure.

24. The method of claim 23, wherein the asset demographic metric may include at least one of:

the non-financial metrics of the user may be,

a non-market-related metric such as,

a large number of employees may be involved in a business,

the occupied area is small, and the floor area is small,

office area, or

Other asset demographics.

25. The method according to claim 1, wherein said (c) comprises weighting based on said objective measure of scale, wherein said objective measure of scale comprises a geographic measure.

26. The method of claim 25, wherein the geographic metric comprises a geographic metric other than Gross Domestic Product (GDP) weighting.

27. The method of claim 1, wherein said method comprises a passive investment method comprising:

an asset portfolio of assets is constructed from the indices.

28. The method of claim 27, wherein the portfolio of assets comprises at least one of:

a fund;

mutual fund;

a fund of the fund;

an asset account;

exchange Traded Funds (ETF);

the account is divided into a plurality of accounts,

collecting trusts; or

Limited partnerships.

29. The method of claim 27, further comprising:

selecting a plurality of assets for trading according to the index; and

trading one or more of the plurality of assets based on the weighting of the index.

30. The method of claim 29, wherein the transaction comprises:

the portfolio is again balanced based on the index.

31. The method of claim 30, wherein said rebalancing comprises:

periodically re-equilibrating.

32. The method of claim 30, wherein rebalancing comprises:

rebalancing is performed based on the assets reaching the threshold.

33. The method of claim 29, further comprising:

rules associated with the index are applied.

34. The method of claim 1, wherein the method of constructing a non-market capitalization weighted portfolio can be used for at least one of:

investment management, or

Investment portfolio benchmarking.

35. The method of claim 1, wherein the method may comprise an enhanced index investing method comprising:

a portfolio of assets is constructed in a manner wherein at least one of holding, performance, or characteristics is substantially similar to an index.

36. The method of claim 1, wherein said method comprises a computer-implemented method and said (a) comprises:

data is collected using a computerized database.

37. The method of claim 1, wherein said (c) comprises weighting based on a non-market capitalization financial metric associated with each of said plurality of assets and a non-financial metric associated with each of said plurality of assets.

38. A system for constructing a non-capitalization weighted portfolio of assets, comprising:

means for gathering data about a plurality of assets;

means for selecting a plurality of assets to create an index of assets; and

means for weighting each of the plurality of assets selected in the index based on an objective measure of scale of each of the plurality of assets,

wherein the weighting means comprises:

means for weighting at least one of the plurality of assets; and

means for weighting in a manner other than based on at least one of market capitalization weighting, average weighting, or share price weighting.

39. A computer-implemented non-capitalization weighted portfolio of assets construction system, comprising:

a processor adapted to collect information regarding a plurality of assets; an index adapted to select a plurality of assets to create an asset; adapted to weight each of the plurality of assets selected in the index based on an objective measure of scale of each of the plurality of assets; adapted to weight at least one asset of the plurality of assets; and is adapted to be weighted in a manner other than weighted based on at least one of market capitalization weighting, average weighting, or share price weighting.

40. A machine-readable medium that when executed by a computing platform provides instructions to cause the computing platform to perform operations comprising a method of constructing a non-capitalization weighted portfolio of assets, the method comprising:

(a) collecting data about a plurality of assets;

(b) selecting a plurality of assets to create an index of assets; and

(c) weighting each of the plurality of assets selected in the index based on an objective measure of scale of each of the plurality of assets,

wherein the weighting comprises:

(i) weighting at least one asset of the plurality of assets; and

(ii) weighting is performed in a manner other than weighting based on at least one of market capitalization weighting, average weighting, or share price weighting.