Features and Updates

Our Investment Approach:
How millionaires use ETFs to build ‘core and satellite’ portfolios

The ‘Core and Satellite’ is the progressive investment approach employed by institutions and ultra-affluent family offices in the United States. Find out why we believe that it is the optimal format for customized diversification, risk management and the pursuit of opportunity in a highly cost and tax-effective manner.

The Best Path to Alpha:
Fantasy versus Factors

Unfortunately, the prevailing wisdom of many investors is that outperformance can only be achieved through the assumption of business risk through concentrated ownership in a stock or several stocks. We depart quite sharply from this old canard, and explain why we endorse empirically-proven “factors” as the likeliest path to outperformance.

The Right Way to Invest:
The Perils of a Piecemeal Approach

Many investors, particularly affluent ones, engage in a form of “intuitive diversification” by spreading their investment assets across two or more investment advisory firms – with or without these firms’ knowledge. Unfortunately, the actual result is often the polar opposite of diversification: total returns are diminished by security duplication, cost inefficiencies, lost rebalancing opportunities and tax-blind implementations.

An Example of Valuations:
Emerging markets’ value

We take a look at the near-term historical outperformance of emerging markets (“EM”) over domestic equity markets – particularly when value universes are compared. Given that emerging economies offer growth rates over twice those of developed economies, investors may want to re-examine whether their equity allocations include enough of EM to benefit from this trend over the long-term.