Investible Models

ETF Model Portfolios Provide Solutions

As Advisory firms continually look to simplify, scale their practices, and spend more time with their clients, ETF model portfolios seek to deliver that solution. In addition, Advisory firms and advisors alike face an important decision whether to manage client investments in-house or outsource parts of the portfolio management process to a third party. Selecting a reputable and trustworthy partner to entrust your clients’ assets is a must once the decision to outsource has been made. All ETF model portfolios are managed using a disciplined approach that seeks to capitalize on long-term trends. The investment universe and model constraints differ from strategy to strategy, resulting in different risk and return profiles.

Unlike other ETF model portfolio offerings from other providers such as Vanguard, Fidelity, and Morningstar, Nasdaq Dorsey Wright model portfolios utilize proprietary Relative Strength methodology. Relative Strength Methodology defined by Nasdaq Dorsey Wright: The most adaptive tool we have found to identify the strongest trends from the weakest within an investable universe is Point & Figure Relative Strength. Our Relative Strength calculation is designed to target long-term themes of outperformance, while also remaining responsive enough to allow for rotation when market trends necessitate. In short, Relative Strength attempts to minimize exposure to underperforming positions, while letting profitable positions run. Most importantly, this systematic and rules-based approach eliminates the subjective or “emotional” trades, as the calculation is derived from price data alone.