iSectors® Capital Preservation Allocation

This is a strategic model that seeks principal stability over a 2-3 year period by assembling a portfolio of ETFs that collectively offer relatively low volatility. Nominal portfolio yield is a secondary goal of the model. The model primarily targets ETFs holding short-term, investment grade fixed income securities. A lesser portion of the portfolio may hold ETFs of short-term international or high yield securities. The model seeks to maintain an average investment grade rating for the entire portfolio as well as keeping portfolio duration to approximately 3 years or less.

iSectors® Domestic Fixed Income Allocation

The iSectors® Domestic Fixed Income Allocation invests exclusively in U.S. fixed income securities through a selection of investment grade and high yield laddered corporate bonds up to five years in maturity. Two percent of the portfolio is allocated to money market instruments to provide liquidity and facilitate transactions. The model is intended for investors with a conservative risk utility or for a conservative portion of a broader asset allocation. The iSectors® Domestic Fixed Income Allocation seek to benefit from ETF’s low investment expenses, transparency, liquidity and diversification compared to most actively-managed mutual funds.

iSectors® Endowment Allocation

The iSectors® Endowment Allocation is strategically allocated for investors with the primary objective of high income from a diversified, multi-asset portfolio. Principal protection is only a secondary objective. The iSectors® Endowment Allocation invests in equity, fixed income, and alternative ETFs with above average current yields. The resulting portfolio has a yield greater than that available from typical stock index and/or bond index portfolios. The iSectors® Endowment Allocation utilizes both traditional and alternative ETFs such as master limited partnerships, infrastructure, laddered short-term higher-yield bonds, and business development corporations. The resulting portfolio also benefits from the low investment expenses, transparency, liquidity and diversification of ETFs compared to most actively-managed mutual funds.