An ETF is an investment fund that is priced and traded on an exchange throughout the day just like a stock. ETFs hold a basket of securities (stocks, commodities, or bonds), and most track an index. Since they were launched in 1993, ETFs have gained tremendous popularity and there are now more than 1,100 available, representing over $1 trillion in assets.
CLS uses ETFs as a building block component of many of our investment strategies. They allow us to address style drift within a portfolio in a cost-effective manner. ETFs are generally much lower in cost and are, by nature, more tax efficient than typical mutual funds. ETFs provide transparency because they are tied to the index in which they reside. For more information on the benefits of ETF, click here
Portfolios are constructed of individual ETFs, which provide an efficient, low-cost way to deliver risk budgeting to clients.
A multi-faceted strategy designed for clients seeking consistent and reliable income from a diversified, risk-budgeted portfolio of income-producing assets.
The entire account is placed into ETFs, which may have a mix of equity, fixed income, and other asset class exposures. However, in times of severe market declines, portions of the account move from ETFs that support growth to less volatile equity and/or U.S. Treasury ETFs. When the market rebounds to a predetermined level, the “sheltered” assets will move back into broader equity market exposure.
