iSectors Domestic Allocations are the ultimate in low-cost, diversified ETF portfolios. Based upon Modern Portfolio Theory (MPT), this series of 5 different risk level models allocates portfolio assets to U.S. equity and fixed income securities. The fixed income portion of these portfolios is diversified across a range of low-cost exchange-traded funds (ETFs), holding mortgage-backed, municipal, and corporate bonds with various maturities. The equity portion of the portfolios is allocated among a diversified basket of large and small cap value and growth index-based ETFs.
iSectors Domestic Series Allocations provide investors with diversified stock/bond portfolios that attempt to produce market or near-market returns by investing in low-cost index Exchange Traded Funds (ETFs). Research has shown that the majority of an investor returns are due to their asset allocation, and not security selection. iSectors Domestic Allocations’ passive strategies eliminate a significant portion of an investor’s costs typically paid to the managers of mutual funds using an active management style. Research has shown that the vast majority of active managers underperform the indexes, and a significant reason for this is the costs of their management fees and commissions. By eliminating those costs, the iSectors Domestic Allocations can provide investors with index type returns with a similar risk profile.
