The objective of this model is capital appreciation and growth. One hundred percent of the model is invested in Equity ETFs. The model is invested with a global footprint with over 50% of the model allocated to international equity ETFs including emerging market equity ETFs. The model is designed to meet and/or beat the MSCI World Index.

A Core and Satellite approach has been used to build this model, with the Core including low cost, market capitalization weighted ETFs. The Satellite includes ETFs that track alternative indices, attempting to add Alpha over the Core indices. Examples include fundamental weighting, dividend weighting, volatility weighting, thematic weighting, etc.

Our Firm’s belief is that dividends add more value in a low return environment, as they contribute a higher percentage to overall equity returns. Hence, having an overweight to higher dividend producing equities should contribute to better returns over time.

Global-Equity

GLOBAL EQUITY ETF MODEL COST ANALYSIS

  • The weighted average cost of the Global Equity Model is 0.31%.
  • This compares very favorably to the Morningstar Category Average of World Stock Mutual Funds of 1.45% (Source: Morningstar Direct).
  • This is a reduction of 79% when compared to active money manager costs!
  • This is particularly important in light of the fact that over the last five years ending Dec’12, only 26% of International Equity Mutual Funds beat their benchmarks (per SPIVA Scorecard, Year End 2012).