Abstract: An electronic trading system for an index-based portfolio is configured to receive a transmission a selection of an index, a term, and an initial investment amount; receive a listing of securities in an index; place a buy order for those securities; store a representation of the portfolio in a database; monitor whether any securities were acquired or bankrupt; determine a most undervalued security; periodically allocate proceeds from acquired or bankrupt securities as well as any dividends to the most undervalued security; and sell any acquired or bankrupt securities in the portfolio.