Once you have selected your portfolio, you can further customize your strategy by choosing from Smart Beta or Socially Responsible Investing strategies.Ĭore Portfolios (Smart Beta): Want a more active portfolio strategy? We’ll allocate a portion of assets to smart beta ETFs – a type of ETF that favors equities with certain characteristics which may help enhance overall returns. d1įor additional information, please see the Wrap-Fee Programs Brochure.Īnd finally, we’ll send monthly market commentary, along with timely insights during major market events, to help keep clients informed about their investments and the market. Access to a dedicated support team is just a phone call away.Core Portfolios rebalances semiannually and when material deposits or withdrawals are made, to help keep the account on track.The goal is to select the appropriate investment portfolio based on an investor’s investment objectives, risk tolerance, and time horizon. E*TRADE Capital Management uses an algorithm to determine your recommended portfolio of ETFs based on answers to your Investor Profile Questionnaire.The team utilizes an investment analysis methodology that incorporates various quantitative criteria, including historical return, risk, expenses, manager tenure, performance and style consistency, and asset size and growth, to select securities held in the investment portfolios.E*TRADE Capital Management’s Investment Policy Committee, with the support of the investment strategy team, develops model portfolios.Many of the assumptions made in MPT rely on historical data, which may not be representative of the future, potentially leading to unexpected outcomes.Īll portfolio holdings will be selected by E*TRADE Capital Management's investment strategy team based on multi-stage due diligence. Combining different asset classes may help limit risk and increase returns of the investment portfolio as the classes have varying levels of correlation to one other. The underlying philosophy of MPT is to contrast a portfolio with a combination of asset classes (e.g., US equity, international equity, fixed income) based on the expected returns and volatility that these asset classes have displayed over time. MPT is a widely utilized framework for building diversified investment portfolios. E*TRADE Capital Management follows a disciplined investment strategy based on principles of Modern Portfolio Theory (MPT).
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