We serve as a fiduciary and always place the interests of our clients first. In doing so, we have a keen understanding that consistently outperforming the U.S. Equity market through the use of actively managed equity strategies is extremely difficult without exposing the portfolio to abnormally high risk. Additionally, risk does not always lead to reward. The value lies in understanding your goals and constructing a portfolio to accomplish specific and identifiable targets.
The cost of actively managed investment strategies, such as mutual funds or separately managed accounts (SMA’s) is detrimental to long-term performance and thus, the ability to achieve investment goals. By focusing on Portfolio Construction and allocating risk appropriately, we can realize market returns through the use of low-cost equity index ETF’s. We aim to manage risk and liquidity through asset allocation and active bond and cash management.
Less time spent on active manager research allows for more time spent on portfolio construction tailored to help you reach your goals. Additionally, eliminating active manger research process lowers advisory fees. Lower underlying fees, lower advisory fees -> higher investor returns, higher probability of achieving success
Active tax loss harvesting compliments the tax efficient ETF portfolio. When the opportunity presents itself, we actively swap similar ETF’s to realize losses reducing the tax liability of realized capital gains. This strategy enhances the net return.