Using a systematic approach to stay attuned to the benchmark is a wonder characteristic of a realistic portfolio. Exchange Traded Funds are realistic vehicles that enable the investor to a diverse exposure, even global, for the very little cost it adheres. Lots of risks can be eliminated through diversification. Though the golden mantra to higher rewards is to break bread with the risk / reward ratio, it is essential to clarify that not every risk is rewarded. Though there are numerous financial tools to help analyze the desired portfolios that fit your financial baskets, the investors are very well educated about the ETF fundamentals in the present time.
Different investors have different expectations towards the returns they expect for the invested amount. Lots of surveys have been conducted on the behavioral patterns of investors, and some of the factors are risk level, age, the needs and the time frame, but here is a very delicate pattern close to my heart. The difference of opinion on the way men like to invest and on the way a woman sees her investment options. Isn't this an issue which brings a smile on your face? Much lies in the actual differentiation of the way they are biologically different. Aha…that's right, frugal studies and researches show that the women actually take a lot of time in deciding on the investment and the opportunities. They conduct proper surveys and spend a lot of time talking to various people in different fields on the pros and cons of the particular investment, with major emphasis stressed on the production, good assets and strong management of the asset class to which the portfolio belongs. Women tend to look for long term association, because they look at investments as a source of security.
Men are prone to market impulses. They don't tend to look for long term investments and love to hop on and off short terms. They look for high risks that bring better revenues and rewards. Since women avail ETF research services to patiently analyze the prospects of the investment, they are more likely to pick on those portfolios that are duly respected in the long terms and have prospective stable returns. Women tend to ward off investments that give them sleepless nights!
Though there is no set or definite criteria, but practically the trends in investments have shown such results. Come what may, gender biased investment put together keep all the sectors of the economy generously filled with funds! No wonder the entire financial market sparkles with the combinations of equilibrium!
Interestingly another new phenomenon appearing in the markets is the merging of Traditional Mutual Funds with the Exchange Traded Funds. Such mergers can be visualized as marriages between the traditional financial vehicles and the latest set of vehicles to join the bandwagon. These newly managed partnerships are the light of the day, as they offer the best of both, keeping away their respective shortcomings. From the Economic Point of View this sort of offering to the financial market is a blessing in disguise. Often difficult for some investors to decide on the fund of choice these partnerships release them off their worries.
The traditional 60/40 model, used by the investment advisors is now no longer so fruitful. The change is due to the process of the evolution of ETFs. Much is due to the unavailable solutions from the Modern Portfolio Theory and alternatives offer better results. For example a balanced portfolio today comprises of 33 percent equity, 33% fixed income and 34% trading alternatives.
Toroso Investments is a SEC recognized New York based Investment Advisory firm, dividing their services in broad categories such as, Portfolio Advisors, Retirement Solutions, and Services for Institutional Investors and Private Wealth Management. They design the best ETF models for their clients using the most reliable ETF fundamentals . ETFs created by its trained professionals are eye candies from the Economic point of view , since their expertise leadership provides the best investment choices keeping in mind the factors such as the investor's risk tolerance and the current financials.