Blog

Time to Consider a Collective Trust?

A recent article in PLANADVISER highlights some of the benefits of Collective Trusts.  The article, “Time to Consider a Collective Trust?”, John Manganaro provides an overview of Collective Trusts, how they are used, and why they are appealing alternatives to target date or balanced funds. Interest in Collective Investment Trusts (CITs), which are also known as Collective Investment Funds (CIFs) by plan sponsors is growing, due to a number of factors,...

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

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...

Hallmarks of Successful Active Equity Managers

As a Firm we are proponents of combining Active & Passive managers to optimize the risk-adjusted returns. Our business is building unique, core, strategic, passive models that provide market returns or beta at a low cost. While there are many reports written about why active management does not make sense as it adds minimal value, I came across this report which talks about why and how active managers might...

Dividend Investing

The era of ZIRP, easy money and financial repression has forced many savers/retirees to look elsewhere for yield/income. This has forced many investors to look at dividend paying stocks to capture a more predictable source of income and as a hedge against market gyrations. With the “graying” of America, it is not surprising that increasingly more investors have been chasing income-generating assets amid this period of relative low interest...