Broad Market Focused Plus Portfolio

Objective: Growth of principle similar to or better than broader stock while taking advantage of market declines to enhance long-term performance.

Wall Street

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 ETF portfolios with broad diversification across the entire stock market. The portfolio may not react or perform similar to the broader capitalization stock market over the short-term due the alpha seeking portfolios that are seeking a better risk adjusted return. The portfolio is expected to perform similar to or better than the broader stock market over the long-term based on historical performance. The portfolio includes a combination of capitalization weighted, equal security weighted, and weighted by the volatility of the underlying stocks.

The “Plus” portion of the investment strategy is designed to take advantage of stock market declines within the US Large Cap and US Small cap portion of the portfolio. If the S&P 500 or Russell 1000 declines -10%, -20%, -30% and/or -40% a 3 times leveraged ETF will be replaced with a designated portion of the portfolio in attempt to take advantage of recovery as it eventually occurs. This strategy should perform up to 3 times the stock market based on the portion invested in the leveraged ETFs.

Maybe suitable for the following investors:

  • The need minimal or no dividends or cash flow
  • The need for growth of principal similar to or greater than the broad market over time

Available Variants:

  • Domestic or Global
  • Only Aggressive/Speculative is available

Past performance does not guarantee future results. There is no guarantee the investment objective will be met. All investment strategies are designed but not guaranteed for the long-term.