Low Volatility Focused Portfolio

Objective: Growth of principle with lower volatility/risk compared to the broader stock market.

Investor analyzing charts on multiple devices

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 only include the lower volatility/risk segment of the stock market. The portfolio may not react or perform similar to the broader stock market over the short-term. The portfolio is expected to perform similar to the broader stock market over the long-term based on historical performance. The portfolio includes a combination of capitalization weighted, equal security weighted, and low volatility/earnings focused securities weighted by optimizing underlying stocks.

Maybe suitable for the following investors:

  • The need for a slightly higher dividend than the broader stock market
  • The need for reasonable cash flow from the portfolio currently or over the next few years
  • The need for growth of principal similar to the broad market over a full market cycle
  • The need for 20% to 40% lower volatility compared the broad stock market over time

Available Variants:

  • Domestic or Global
  • Conservative through Aggressive (Fixed income allocations are based on risk tolerance. **The
    fixed income portion of this portfolio is allocated to the Conservative Fixed Income Portfolio)

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.