Countercyclical Indexing is a low cost and tax
efficient indexing strategy that focuses on rebalancing a portfolio over the course of time to create more appropriate returns.
Not exact matches
We nudged them toward broad - market ETFs that track traditional
indexes, rather than niche products or those using more elaborate
strategies, and we awarded bonus points to ETFs that are more tax -
efficient.
Some choose to focus on broad diversification across several asset classes, some have various options
strategies, alternative investments or a focus on low - cost and free ETF trading to match
index returns from an «
efficient market theory» standpoint.
Similar to mutual funds, ETFs allow access to a number of types of stocks and bonds (or asset classes), provide an
efficient means to construct a fully diversified portfolio, include
index - and more active - management
strategies and are comprised of individual stocks or bonds.
By implementing this
strategy we are able to maintain a low fee and tax
efficient approach while better controlling for risk than traditional
indexing strategies do.
We call this approach «Countercyclical
Indexing ™» because it is a low fee, tax
efficient and diversified
strategy designed to match an investor's profile to the changes in the business cycle as stocks tend to become riskier late in market cycles and less risky early in market cycles.
All of these
strategies are low fee, tax
efficient, broadly diversified
index based approaches that are based on a systematic portfolio management approach.
Low cost, passive
index fund investment
strategies are inherently more cost -
efficient and far less risky.
If my passive income
strategy works out, I may never have to tap into it Anyways, the REIT
index fund will have many many years to compound all the dividends in a tax
efficient way.
In many cases,
indexing can be an optimal
strategy because most of the major capital market asset classes are extremely
efficient from both a depth and liquidity standpoint.
In turbulent and for institutional investors looking at both temporary exposure as well as complex quantitative
strategies,
index investing is both more
efficient from a risk perspective as well as significantly cheaper.
Index investing is a cheap and tax -
efficient strategy which allows average - Joe passive investors to beat most active professional investors.
But there's a
strategy that could give you a better return: Use your taxable account to pursue a tax -
efficient stock
strategy, such as investing in stock
index funds, while buying taxable bonds within your retirement account.
Why not use your taxable account to pursue a tax -
efficient stock
strategy, such as investing in broad stock market
index funds, so you take advantage of the special low rates on long - term capital gains and qualified dividends?
• Growth Opportunity: Gain exposure to one of the fastest - growing segments of the global economy • Diversification: Little overlap in holdings with major broad stock
indices and significant exposure to non-North American stocks • Innovative
Index Design: Stocks selected using a rigorous research process overseen by an advisory panel with extensive expertise • Currency hedged: All U.S. dollar exposure is currency hedged, making it a more currency
efficient strategy for Canadian investors • Takeover Premiums: Companies about to experience corporate takeovers typically see their stock value increase.
If the market is
efficient, Valuation - Informed
Indexing strategies make no sense.
Our investment approach combines low - cost, tax -
efficient indexed investment focus with targeted active management
strategies and sophisticated risk - mitigation and income - enhancement techniques to maximize client returns at any risk level.
Most importantly, this
index based
strategy can be done in a diversified, low fee and highly tax
efficient manner.
What matters most is utilizing pure, optimized, and
efficient asset allocation
strategies; and then consistently picking mutual funds that are a close proxy to their asset classes (or just using
index mutual funds).