A Core and Satellite approach methodology is employed to construct this model, with the Core including low cost, primarily market capitalization weighted ETFs across four main segments of the market:
1) Real Estate Investment Trusts
2) Infrastructure/Master Limited Partnerships
3) Commodities & Precious Metals and
4) Inflation Linked Fixed Income.
The Satellite allocations include ETFs that track alternative indices, attempting to add alpha over the Core indices. Examples include dividend weighted ETFs, sector/thematic ETFs, long/flat[/glossary] commodity indices, fixed duration inflation indexed ETFs, actively managed senior bank loan ETFs, etc.