“You work hard for your money. We believe your money should work hard for you.”

-David Wall, Founder & President


Our Approach

tactical2017

 

After identifying your specific financial goals, tolerance for risk, investment time horizon, and tax situation we will construct and manage a portfolio of exchange traded funds (ETF’s) tailored to meet your specific needs. Managing a portfolio of exchange traded funds requires as much attention to risk as it does to return.

For this reason, the composition of a portfolio should actually consist of two distinct strategies with different objectives. They are:

  • A Strategic Core Portfolio, which is invested in a mix of stocks, an asset class, whereby an investor has ownership in public companies, and bonds, whereby an investor lends his money to a credit worthy borrower, seeking more stable rates of return.
  • A Tactical Satellite Portfolio, with a goal of increasing returns and reducing risk through periodic revisions of the asset mix. This is accomplished by utilizing certain market subsets. Those subsets are illustrated below.

What are ETFs?

An ETF is a highly diversified basket of stocks or bonds that trade in real time, unlike a mutual fund. Generally speaking, they are designed to replicate the broad market, but may also replicate a specific style (Growth/Value), market capitalization (Large/Mid/Small), sector, industry, and country or region.

Many investors are not aware that ETF’s come in various shapes and sizes and are not created equal. Some are passively managed while others are actively managed.

Exchange Traded Funds:
  • Are extremely transparent
  • Are more tax efficient than a mutual fund
  • Have lower expense ratios
  • Are very liquid
Utilizing ETF’s In the Core Portfolio Allows the Advisor To:
  • Broadly diversify a portfolio of stocks and bonds
  • Have certainty that the portfolio will behave like the broad market, capturing market returns
  • Access a large investable universe, specific to a desired objective
Utilizing ETF’s in the Satellite Portfolio Allows the Advisor to Add Value By:
  • Providing the flexibility in managing the overall asset allocation
  • Providing flexibility in managing sectors, industries, regions
  • Providing a means to invest in asset classes that are normally difficult to purchase in an effort to minimize losses in a bear market

Cost Savings

Exchange traded funds are a low-cost alternative to traditional mutual funds. Many actively managed mutual funds have internal expenses of 1% or more. Those same expenses for ETF’s are commonly 50% less. The exhibit below illustrates the value added by investing in an ETF portfolio vs. a mutual fund portfolio.

We are passionate about our reputation,
our value proposition, our mission, our clients, and their success.

We welcome the opportunity to serve you.

Contact Us