Exchange-Traded Fund Strategies
Overview
Our ETF strategies are constructed with both very low cost passive exchange traded funds and some factor based
exchange traded funds. Exchange Traded Funds can be more tax efficient than mutual funds and are generally
a lower cost way to invest than mutual funds.
exchange traded funds. Exchange Traded Funds can be more tax efficient than mutual funds and are generally
a lower cost way to invest than mutual funds.
Investor Profile
An investor in the ETF strategies prefers to invest at a very low cost and believes proper asset allocation along with some tactical positioning through factor based ETF’s will provide a competitive return.
Strategy Objective
The ETF strategies are designed to provide returns similar to what an investor would receive if he or she were able to invest in a broad mix of indices covering various investable securities markets. The passive strategies do attempt to provide some alpha by making tactical shifts between asset classes over time and allocating some funds to factor based ETF’s.
Strategy Characteristics
The passive strategies consist of a broad mix of very low cost ETF’s designed to replicate the returns of various indices and some factor based ETF’s. We currently have five ETF strategies.
The strategies are from most aggressive to least aggressive an all equity strategy, an 80/20 strategy (80% equity, 20% fixed income) a balanced 60/40 strategy, a 60/40 tax efficient strategy, and a 30/70 strategy.
The strategies use International funds, small/mid cap funds, high yield and emerging market debt funds, reit funds, and others, in addition to core large cap stock and investment grade bond funds. There is no set policy limiting the number or type of funds that can be put into a strategy but the expectation is the strategies will use approximately 10 funds.
The strategies are from most aggressive to least aggressive an all equity strategy, an 80/20 strategy (80% equity, 20% fixed income) a balanced 60/40 strategy, a 60/40 tax efficient strategy, and a 30/70 strategy.
The strategies use International funds, small/mid cap funds, high yield and emerging market debt funds, reit funds, and others, in addition to core large cap stock and investment grade bond funds. There is no set policy limiting the number or type of funds that can be put into a strategy but the expectation is the strategies will use approximately 10 funds.
Strategy Process
We analyze third party projected forecasts for the expected returns of various asset classes. That information is combined with our own viewpoint to derive target percentages for the exchange traded funds. The target percentages are reviewed semiannually, or earlier if market volatility develops. If expectations change, we will change the target percentages, or if the performance of ETF’s has varied widely, we will rebalance back to targets.
Want to know more about Fund Strategies?
*The investment(s) discussed may not be suitable for all investors. Investors should make investment decisions based on their own specific investment objectives and financial circumstances.
**Additional information is available upon request.
***Any investment contains risk, including the risk of total loss, fluctuating prices and uncertain returns.
**Additional information is available upon request.
***Any investment contains risk, including the risk of total loss, fluctuating prices and uncertain returns.
