Broad Market Tactical Balanced Portfolio

Objective: A balanced portfolio with growth of principle and income while taking advantage of market declines.

Investment Strategy

The portfolio is designed to invest in traditional and enhanced indexed investment strategies through tax and cost-efficient Exchange Traded Funds (ETF). Each ETF is thoroughly evaluated for its fees, strategy, market segment, risk, and corporate sponsor. It is the objective of the portfolio to diversify among capitalization weighted as well as smart (strategic alpha producing) beta indexed based ETFs. The smart beta portfolios typically seek underlying securities that represent strong corporate fundamentals such as earnings and growth to name a few. Strategic alpha is designed to seek a better risk adjusted return compared to traditional cap weighted indexed strategies.

The objective of this portfolio is to include broad diversification across the entire stock market. The portfolio may not react or perform similar to the capitalization stock market over the short- term due the alpha seeking portfolios that are designed for a higher risk adjusted return. The portfolio is expected to perform similar or better than a moderate risk of stocks and bonds over the long-term based on historical performance. The portfolio includes a combination of capitalization weighted, equal security weighted, and earnings/weighted by the volatility of the underlying stocks. The fixed income portfolio includes a combination of short-term, intermediate-term bonds and fixed income alternatives.

The tactical portion of the balanced portfolio is designed to take advantage of market declines as they occur. The portfolio has a target asset allocation of 65% equities and 35% fixed income. In the event of a stock market decline of at least -10% from the all-time high, the tactical balanced portfolio would add at least 10% of equities from the fixed income portion of the portfolio. If the stock market continues to decline by -10% increments and additional 10% of equities will be added unless market conditions determine otherwise. The balanced portfolio can allocate as much as 95% in equites in attempt to take advantage of market declines in hopes of improving the returns over time. The portfolio is expected to return to the target allocation once the market reaches its previous all-time high.

Designed for the following investors:

  • The need for minimal income
  • The need for minimal cash flow from the portfolio currently or over the next few years
  • The need for growth of principle
  • The need for lower volatility compared to the broader stock market over time.

Available Variants:

  • Domestic or Global