ETF Portfolio Management launches InvestableBenchmarks.com
ETF Portfolio Management (ETF PM) has launched InvestableBenchmarks.com to help investors save money annually. The firm is first to offer strategic multi-asset class core portfolios with no advisory fee.
"Many investors significantly underperform strategic indexing long term," says David Kreinces, ETF PM's founder and portfolio manager. "We believe investable benchmarks help investors avoid mistakes and save thousands of dollars annually."
Top endowment fund managers have shown investors the importance of liquid and transparent multi-asset class diversification using ultra low-cost ETFs. The firm simplifies this process by giving investors the asset allocation for three strategic core portfolios using leading ETFs from Vanguard and iShares:
Income (30/70i) – a portfolio of two ETFs with 30% in global equities and 70% in long-term treasuries.
Income & Growth (I&G) – a portfolio of five ETFs with 50% in fixed income.
Growth (eMAC) – an efficient multi-asset class (eMAC) portfolio modelled after the recommendation from David Swensen, Chief Investment Officer at Yale University, in his book, Unconventional Success. The eMAC employs six ETFs with 30% in fixed income.
Over the past decade, the investable benchmarks returned over 8% per year, with a total return range of 117% to 141%. The Income Portfolio outperformed the eMAC and each of the investable benchmarks significantly outperformed the hedge fund index total return of 87%.
The investable benchmarks offer roughly 3% in annual yield, with blended expense ratios under 0.20% per annum. "Many investors would be shocked to learn how much they have paid in fees and expenses to significantly underperform these efficient core portfolio solutions," says Kreinces.
ETF PM also specialises in disciplined ETF trend following. The firm offers a dynamic range of strategies that seek to deliver positive returns in all market environments. The firm's trend following strategies delivered gains in the crash of 2008, and ETF PM is first to focus investor attention on hybrid portfolios that combine trend following with indexing.
In order to partner directly with clients and the community, ETF PM created a Pledge to Give Back in which a percentage of each client's annual advisory fee is donated to the school or charity selected by the client. For 2011, the important entities supported by ETF PM included Khan Academy, Memorial Sloan Kettering Cancer Center, Ronald McDonald House New York, School on Wheels, six public schools, St. Jude Children's Research Hospital, Unity Shoppe, two YMCAs, and more.
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