12 common 401(k) compliance errors

According to the IRS, the most common errors in connection with qualified plans, and specifically a 401(k) defined contribution plan, are as follows: Failure to update the required plan document to reflect required mandatory law changes governing 401(k) plans Failure to follow the terms of the plan document in operation, generally as to those common errors that hereafter follow Failure to use the SAME plan definition of “compensation” correctly...

Rapid rise of Alternative Investments

Most alternative investment assets are held by institutional investors or by accredited, high-net-worth individuals and, according to Preqin, now total $6 trillion. Alternative investments include hedge funds, managed futures, real estate, commodities and derivatives contracts. But alternative investments aren’t just for institutions any longer. According to Morningstar alternatives investment analyst Josh Charney, $38.7 billion flowed into alternative investment mutual funds and ETFs over the year ended April 30, 2014....

New Endowment Index^TM Launched to Provide Independent Benchmark for Fiduciaries

Endowment IndexTM now available as a benchmarking tool for investors that manage multi-asset portfolios comprised of both traditional (stocks and bonds) and alternative (private equity, real assets, hedge funds) asset classes. Appleton, WI (PRWEB) May 22, 2014 Endowment Wealth ManagementTM, Inc. in collaboration with ETF Model SolutionsTM, LLC have launched the Endowment IndexTM (Symbol: ENDOW) as a benchmarking tool for investors in globally-diversified, multi-asset portfolios that include alternative investments. The...

Smart Beta or Strategic Beta?

Morningstar has put together the following matrix to help clarify the above, that we find very useful in our model portfolio construction:

Bitcoin ETF?

A Bitcoin ETF? What is next? Who knows? All we know is that the ETF industry has democratized institutional investing and opened access to any asset class, strategy, style, etc. it to any investor. Our recommendation with any new ETF that is launched is to be patient and watch it evolve and grow before diving in with head first. We have mixed feelings about Bitcoins and are watching its evolution...

Long-Short Category of Liquid Alternatives Shows Rapid Growth

A recent Morningstar.com article,  “A Red Giant Engulfs the Long-Short Category” reports upon the growth in Long-Short Equity Funds.  ETF-Model Solutions employs Long-Short funds to fulfill our hedge strategies portion within both our Hedge Fund of Funds model and the Risk-Managed category in our

Recent Studies Highlight Rapid Use of Liquid Alternatives. Managers Set Sights on DC Plans

A recent article published by COOConnect provides hard data on the growing use of alternative investments.  Our key takeaways:  “The liquid alternatives industry is growing at a faster rate than traditional hedge funds as investor interest in these regulated structures shows no sign of abating.  Liquid Alternatives grew 43% in 2013 to $137 billion and will reach between $650 and $950 billion by 2018.”          ...

Advisors Improve 401(k) Plan Satisfaction of Small Business Owners

Survey shows small business owners that work with a financial advisor are more satisfied with their 401(k) Plan. A recently published survey of employers regarding their 401(k) Plan offered several insights into the impact that 401(k) Plans have for employers that have between 25 and 250 employees.  In summary: Plan Sponsors that work with a financial advisor (61%) are more satisfied with their firm’s 401(k) Plan than those that...

ETFMS Monthly Market Commentary: April 2014

Domestic equity markets were a study in contrasts in April, with significant divergence among various segments of the market. The key story of the month was the continued rotation in leadership within market capitalizations as well as growth-value dimensions. In addition, Internet-related growth stocks suffered declines as investors assessed whether those companies would live up to their high current valuations. Geopolitical tensions remained at the forefront of investors’ minds, with...

Alternative Investments

The use of alternative investments continues to grow. According to Lipper, alternative mutual funds saw the biggest percentage growth of any fund group, with assets under management increasing 41% to $178.6 billion in 2013. A recent report by Goldman Sachs projects liquid alternatives are in the early stage of a growth trend that could produce $2 trillion in assets under management in the next 10 years. The number of funds have...