Did you know that if you invest in a traditional market-cap-weighted index like the S&P 500, a few stocks that have already racked up big gains become a disproportionate share of your holdings?
Not only do you inherit higher exposure to potentially overvalued stocks, you also make huge sector bets and miss out on the opportunity of owning small-cap stocks all together. The logic behind these decisions is arbitrary and does not provide you with the proper diversification indexing is supposed to provide.
We believe the construction methodology of these indexes has inherent flaws which are costly over time and add unnecessary risk. Historical results strongly support our view. In order to address these issues, we created our own proprietary indexing methodology called Smart Weighting.
Smart Weighting takes a sampling of individual U.S. stocks to construct an index that more equally weights three key factors: economic sector, style, and size. The goal is to achieve a better risk-adjusted return while also benefiting from other value-adding opportunities.
Benefits of Your
We review portfolios daily for rebalancing opportunities. This provides the potential for enhanced returns by creating a systematic way of buying low and selling high.
Smart Weighting provides more even exposure to factors such as size, style, and sector, ultimately providing better diversification for your portfolio.
Your own dedicated service advisor will be there along the way to help with financial planning needs and behavioral coaching.
Personal Capital Advisors Corporation ("PCAC") compensates ("Company") for new leads. ("Company") is not an investment client of PCAC.
["Author"] has entered into an agreement with Personal Capital Corporation ("Personal Capital"), through which Author will be paid between $70 and $150 for each person who uses webpage to register with Personal Capital and links at least $100,000 in investable assets to Personal Capital's Free Financial Dashboard. The “Author”, due to such compensation, has an incentive to recommend Personal Capital, resulting in a material conflict of interest. Author is not affiliated with Personal Capital and Author's services consist solely of referrals of prospective clients. As a result of this arrangement Author may financially benefit from referring qualified leads to Personal Capital. No fees or other amounts will be charged to investors by Author or Personal Capital as a result of the arrangement. Investors that are referred by Author to Personal Capital and subscribe for investment advisory services provided by Personal Capital’s subsidiary, Personal Capital Advisors Corporation (“PCAC”), will not pay increased management fees or other similar compensation to Author, Personal Capital or PCAC as a result of the arrangement. This agreement with Author does not imply a sponsorship, endorsement, approval, investigation, verification, or monitoring by PCAC of the contents of the Author's website. Personal Capital is not responsible for the content of any website owned by a third party that may be linked to Personal Capital's website regardless of whether the link is provided by PCAC or a third party. Personal Capital does not prepare or maintain, has not and will not review or update, and does not guarantee the accuracy, timeliness, completeness, suitability, reliability, or usefulness of any information contained on a linked third-party website.