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  • How About An All ETF Portfolio Model?

    An all ETF exposure is an emerging trend which is empowering the investors to design their portfolios around their financial needs and time horizons with a complete allocation to various benchmark bound ETFs available today.

    The idea revolves around the five basic asset classes and a customised All ETF Model ensures that the weight age to each is as per the various investors' preferences that may vary from his risk appetite, a suitable time frame when he may actually require the money and even to an extent of his natural affinity to certain asset classes.

    ETF critics often reason that lack of historical data puts a question mark on the credibility of these funds, but are time and again silenced with the year on year performances of the various ETFs trading on the streets.

    Thus whether it is about the Private Wealth Management or the Retirement solutions, a good ETF consultant's job is to churn up a fund kitty which is exclusive to the investors' needs and likings and yet enables an exposure that works well even in a plummeting market.

    The ETF market itself has exploded in the United States and industry which was close to a $500 million in early 2009 is now posting volumes more than $1500 million on the American exchanges.

    The variety too is vivid and more than 1200 equity funds are available in America that are attuned to bona fide benchmarks and rather than out performance, the fund managers are more focussed on being a pure play to their respective benchmarks.

    An all ETF Model may use a simplistic approach where equities and bond share a 70 / 30 relationship. Although it sounds like a lot of research to track historical data of equities and calculating the various bond yields but in an ETF world a single fund can expose you to the top equities from the American, emerging and other developed markets from around the world and then there are others that track the World Bond markets.

    The model works well for the minimalistic lot, as owning as little as two or three funds will suffice in achieving a wide spectrum exposure that spans continents but simultaneously is easier to track and trade with.

    A radical approach to an All ETF Portfolio Model may include being heavy on the emerging markets products or even commodity funds for that matter. Being overweight to small cap equity is another option if you are sure about growth of a particular local economic sector or even if the notion is to bet on the small companies of the emerging nations, an ETF Model is available which will provide just the right exposure that one is looking for.

    Folks who are seeking fixed incomes and regular yields will also find enough choices in the form of Super Dividend funds and Cash funds that bet on the fluctuation of the local currency rates in the emerging brigade such as China, Brazil and India.

    Keeping it Simple
    Apart from the gains to be made from the movements of these dynamic asset classes, these funds score high on liquidity and over exposure does not lead to depletion of the principal as the approach is systematic and standardised through a wide asset basket and a strategy that only tries to derive gains from the median of the results.

    When designing your ETF Portfolio, one must intentionally stay away from the potential pain areas such as the European and Japanese equities where problems are more than just cyclic.

    Rather a progressive ETF Model will bear more interests in the upcoming segments of the EM stocks owing to the value growth that they offer and even sector wise vestment treasury and mining funds may seem apt for long term investors.

    Toroso Investments is a SEC recognised and New York based investment advisory firm. The strategists on board take pride in their "Point of View Investing" style which works around the benefit of their clients. Apart from the general Advisory services and Private Wealth Management through exclusive ETF Investment strategies, the company also gives assistance in creating ALL ETF Portfolio Model for ones seeking Retirement Solutions and for the Institutional Investors.

    Apr 20 9:12 AM | Link | Comment!
  • Your ETF MODEL Must Work Around YOU

    Diversification with Equity Traded Products is a good logic if approached systematically. An ideal ETF Portfolio should be able to generate maximum alpha with the minimum Beta on portfolio [preferably lower than one] no matter what the market conditions are.

    In simpler terms, although ETFs are a must have to enjoy high yields but these investment decisions should be backed with strategies that are battle - ready against the basic market forces like Economic Performance, State Policies and the speculative volatility that arises out of Investor Sentiment and Behavior.

    A balanced ETP exposure is important because First World Economies may take more than a few business cycles to get on track and the growth driven emerging economies cannot answer to all the economic woes. As a result returns procured from conventional Bonds and Cash Markets will remain low for an extended period and it is a known fact that amid volatility, equity markets too become untouchable to general investors; a partial exposure to broader markets in form of an ETF Portfolio can cater to your choices and your financial needs in a market where well above thousand Equity Funds are available, out which most don't even strictly follow their respective benchmarks.

    Within the equity space, one is confronted with a plethora of investment ideas and options are available to invest in the foreign exchanges especially popular are the products from the emerging South East Asian region.

    Commodity ETFs will also give choices to suit all metal-wise preferences and even offers exclusive exposure to selective sectors like Gold Explorers or the Copper Miners. These commodity driven funds may or may not be physically backed, but the basket methodology used by the issuers ensures lower risk volatility when compared to the direct investments in the notorious commodity exchanges.

    High Yield Bond ETFs and Cash Funds are more centric on the Fixed Income and Regular Payouts for the investors and enough choices are available in the American Markets. These funds basically invest with the likes of Treasuries to entice the yield greedy investors but are not insured as per the Federal norms thus may result in the loss of principal as well. Other than the pay-out frequency, it is the higher liquidity feature that also compels the participants in adding Bond and the Money Market funds to their ETF Models.

    The biggest challenge for investors lies in careful fund picking and in deciding as to on which asset they should outweigh their investments. A desire for equity like returns should be well matched with a higher risk tolerance and similarly if safety is your prime concern, yielding bond funds will be your first choice where lower returns are standard. Making these choices is easier when you are sure about your own outlook on the markets, life stages when you may require surplus cash and eventually your solvency period for the investment.

    A Model ETF Pool that is built around your benefits will try to encompass all of this and much more as valid forecast data and historical market movements are also considered pre investing, whether you achieve this through self study or professional help, always have point blank clarity on your vested period and generate investment pool though systematic investment plans [SIPs].

    The market traded funds are a fairly new idea in the markets and unavailability of enough historical performance data has been the biggest hindrance cause among conventional investors who argue that even the indices that these funds follow are only relying on hypothetical derivations of forecasted numbers and not the actual performance of the stocks or the funds.

    Toroso Investments LLC is a SEC accredited Investment Advisory firm based in New York, USA. They offer services in designing ETF Models for Private Wealth Management, for Advisors and Institutional Investors and ETF Portfolios that focus on Retirement solutions. The company claims that their diligent research work and the propriety investment solutions are the biggest winners for their clients.

    Mar 25 7:29 AM | Link | Comment!
  • How To Understand ETF; Simple Tips To Know More About ETF

    How to Understand ETF; Simple Tips to Know More about ETF

    ETF -also known as exchange traded fund - is a type of investment that is traded in stock exchange market anywhere in the world in the same manner as stocks are traded. ETF has broad spectrum of investment options that include bonds, commodities and stocks. The value of assets is calculated during the end of the trading day. People are more interested in this investment because it provides stock like features, tax efficiency and low costs. Nowadays, new investors can rely on ETF as this is most effective and popular way of getting good returns on investment.

    What is Junior Miners ETF?

    Junior Miners ETF is another fund option that is considered safe and secure for small investors as their money is completely safeguarded. Due to great benefits and advantages the Junior Miners ETF is quite popular among more than 3.6 billion in AUM. Most of the trading is rendered on daily basis like over 4 million shares are traded daily. It means buying and selling is quite easy for anyone. Junior Miners ETF is a minor product in large pool of money ensuring good returns whenever you want.

    Why Should I Invest Junior Miners?

    Why should I invest Junior Miners and when should I invest Junior Miners are questions also come to the mind of new investors. Investment promises of good returns as the fund is invested in around 70 to 80 percent of the total assets in securities that consists the index. Here the role of index is quite important because it follows complete performance of domestic as well as foreign openly traded companies having medial and small capitalization including especially in mine sector for silver and gold.

    Advantages of Small Cap Mining Companies

    According to Ubika Research Senior Analyst Vishy Karamadam, small cap mining companies is profitable idea for investment for investors willing to have development and growth potential of small caps and good income at the same time and also looking for the best exposure to commodities. Investing in small cap mining companies could be a good beginning for new comers in financial market as stocks having growth and income opportunities could be identified easily.

    Why Should I Invest In Junior Mining Companies?

    For regular and additional supply of commodities, mining industry is quite dependent on junior mining companies, thus giving more investment options for people like you. If you want to invest in junior mining companies it would be a wise decision because junior mining companies have no dearth of developing, exploring and monetizing new mines to create extra supply to meet the market demand. But, junior mining companies might pose higher reward/risk in comparison to large cap miners. But risk could be reduced by diversifying the fund and investment in number of junior mining companies.

    Future of Junior Mining Sector

    Retail and industrial buying is required for junior mining sector due to which trading volume is increasing day by day as new resources are being developed that results in more investment opportunities and options.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Oct 17 4:00 AM | Link | Comment!
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