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It’s all in the allocation
What is the biggest influence on the performance of a portfolio? It’s not stock selection or market timing. It’s asset allocation — how wealth is spread across different asset classes.
We feel index exchange traded funds (ETFs) are the best vehicles to access different asset classes. Here’s why:
- Diversification – We’ve vetted the field of 1000 available ETFs down to about 60 we consider well structured and ably managed. Using this menu we build highly diverse custom portfolios that encompass a wide range of asset classes and thousands of securities via a relatively small number of ETF holdings.
- Access – Highly focused ETFs now offer entry to very specific asset classes once available only to large institutions.
- Expense control and tax efficiency – We strongly favor ETFs that are managed with clear emphasis on controlling expenses and tax exposure. These elements have a big impact on the only measure that matters — how much money you keep.
- Transparency – Index-based investments track specific published indexes, so you can see what you’re getting and know what you own.
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