We invest in six different asset classes through six different Exchange Traded Funds and, in this way, we reach thousands of securities in a very cost-effective manner.
The six ETFs cover
• US stocks, investing in the largest 1,000 US companies across all sectors of the economy
• US bonds, investing in US Government bonds and other investment-grade corporate and other bonds
• US real estate, investing across a range of Real Estate Investment Trusts (REITs)
• Developed countries’ stocks, investing in hundreds of stocks in Europe, Asia, the Far East, and Australia, across all economic sectors
• Emerging markets stocks, investing in large-cap and mid-cap stocks in emerging markets including China, South Korea, Brazil, India, Russia, South Africa and Mexico
• Commodities, investing across most major commodities including gold, silver, oil, wheat and copper
ETFalpha uses this enormous diversification across global markets so that your money is not invested in just one basket but spread across the continents.
The main purpose of this wide diversification is to reduce risk.
The results can easily be seen in our Performance pages. ETFalpha’s objective is to get superior returns at lower risk.
• R.G. Ibbotson and P.D. Kaplan, (2000), “Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance?” (Financial Analyst Journal)