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
Our sophisticated tax-optimization process focuses on three key areas: asset location, tax-loss harvesting, and tax efficiency.
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.
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