Strategy Description
Designed to provide income, this model actually blends four different strategies and applies our Downside Risk Protector®
This strategy is a multi-asset class income model that invests in a wide range of cash, fixed interest, and dividend-focused ETFs.
Included in the analysis are U.S. Treasuries, mortgage-backed securities, investment-grade and high-yield corporate bonds, emerging market bonds, REITs, preferred stocks, and dividend stocks.
The model is rebalanced monthly.
The strategy is designed to be a total portfolio solution and can also serve as a core within a core-satellite construction.
Definitions
Sharpe Ratio – the average return earned in excess of the risk-free rate. A higher Sharpe Ratio is better
Risk-Free Rate – represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.
Sortino Ratio – another measure of risk that takes into account the downside deviation of the asset. A higher Sortino Ratio is better.
What is drawdown?
Drawdown is the measure from the highest high to the lowest low or peak to trough during a specific time period. It is an important measurement of risk. A larger drawdown requires a more significant increase in the security to recover.
