Q: What does an ETF portfolio look like?

A: See for yourself.

The report above shows the composition of one of approximately twelve portfolios designed by Osbon Capital Management for client accounts. This is the domestic equity portfolio.

Each portfolio is carefully designed to balance risk and return, control costs, and align with investor goals. We utilize index exchange traded funds (ETFs) in all portfolios for their low expenses, tax efficiency, and representation of essential asset classes.

By selecting from a universe of approximately 60 thoroughly vetted ETFs and adjusting their weights, we are able to shape portfolios by capitalization, style, industry, geography, currency, and yield. For example, the domestic equity portfolio utilizes 10 ETFs to create an intentional mix of large and small capitalizations, growth and value, and distinct industries. By regulating the weights of these ETFs, we fine tune the expected risk and return profile of the portfolio.

Despite its rich diversification, the expense ratio for this portfolio is just 0.23 percent.

We would be happy to review other portfolios with you. Just reply to this email and we'll be in touch promptly.

Next time: Which market sectors will outperform in the 2010s?

Contact: John Osbon 617.217.2772 josbon@osboncapital.com

The foregoing data represents the performance of model portfolios developed by Osbon Capital Management, LLC ("Osbon"), but does not reflect the results of an actual client account. The returns shown herein are the long term capital market assumptions developed by Osbon and do not reflect actual or historical performance. The foregoing returns are to be used for illustrative purposes only. The Osbon model portfolios are allocated in a range of investments according to Osbon's proprietary investment strategies. Osbon's proprietary investment strategies are allocated among exchange traded funds and other instruments managed with a view towards income, total return and/or capital appreciation.

The performance results of the foregoing Osbon model portfolios reflect the re-investment of dividends and other earnings. The performance shown represents hypothetical backtesting of the Osbon model portfolios before fees of 80 bps. Backtested hypothetical performance differs from actual performance because it is achieved through the retroactive application of each strategy with the benefit of hindsight. Results may not reflect the impact that material economic and market factors might have had on the decision-making process if client assets were actually being managed.

Past performance of the Osbon Composite Portfolio may not be indicative of future results and the performance of a specific individual client account may vary substantially from the model portfolio results contained herein in part because client accounts are customized based upon each client's varying investment goals, time horizons, and risk tolerances. Any reference to estimated returns and/or volatility are for illustrative purposes only. There is no guarantee that the actual returns or actual volatility will be the same as referenced above. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable. All information is for illustrative purposes only and should not be construed as personalized investment advice or a solicitation to purchase any security.

Osbon Capital Management is a registered investment adviser with its principal place of business in the Commonwealth of Massachusetts. Osbon and its representatives are in compliance with the current registration requirements imposed upon registered investment advisers by those states in which Osbon maintains clients. Osbon may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Any subsequent, direct communication by Osbon with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Osbon, please contact Osbon Capital Management or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov).

For additional information regarding Osbon, please contact Osbon Capital Management for a copy of Osbon's disclosure statement as set forth on Form ADV using the contact information herein. Please read the disclosure statement carefully before you invest or send money.