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Dear Investor

Below are our latest blog posts for the week of April 13th.  Click on the links below to view the full article.

Refreshing Your Risk Management Approach

Risk management has become a buzz word in the investment business with little real world application over the last several years. The need for stop losses, hedging, strategic asset allocation, and other counter measures to traditional market cycles has been overridden by a “buy the dip” mentality. Active investors have been conditioned to wait for a little speed bump and then race into the fray with extra cash to buy up stocks and ETFs.

How We Differentiate Ourselves

A prospective client of our firm recently asked how we differ from his current relationship with an advisory program at a well-known discount broker. He stated that he is paying 0.70% in annual management fees and has been unimpressed with the portfolio makeup in his and his wife’s IRAs.

We offered some of the following differentiating factors to aid in his decision making process.

Look For The Best Core Index ETFs In Your Own Backyard

Published on NASDAQ.com

One of the biggest benefits to incorporating ETFs in your portfolio is the capability of these funds to provide instant exposure to a particular market segment with built-in diversification. Too often this simple facet goes overlooked as the analysis of enhanced indexes, fees, tax considerations, and liquidity overwhelm our senses.

While these characteristics are important, they often provide additional noise that can drown out the sound principles of index investing. i.e. Owning a well-diversified mix of assets to smooth out volatility and enhance long-term returns.

ICYMI: Doubling Down on DoubleLine

When managing a portfolio of closed-end funds (CEFs), sometimes the valuation of funds you own are less important to consistently evaluate than the funds you don’t own.  This is a key reason why every CEF investor should maintain a watch list of familiar funds.

But unlike watching a list of equity ETFs, where nearly every move is relatively correlated with the daily fluctuations of S&P 500 index, and small divergences happen over time.  In CEFs you can actually view dislocations happen in real time, since there is no guarantee of any meaningful correlation with fixed income or equity prices.

P.S. Did you know our core actively managed ETF portfolio minimums start at just $100,000?

Learn more about our new client onboarding process.  Our client accounts are custodied at TD Ameritrade and we do all the work of account setup, transfer, and service for you.  It’s never been easier to get started working with a fee-only investment adviser today.