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Investments

Investors Are Unique. Therefore, Three Unique Styles

Vanguard Logo

 

Dimensional

 

Blackrock

 

Low Cost Indexing Approach - Vanguard

Many are familiar with Vanguard for good reason. The expense ratios on their Exchange Traded Funds (ETFs) are among the lowest in the industry.

Unfortunately, this doesn't deliver the gift of wisdom to beat the stock market. Example: some investors exit cash during a market downturn.

That's where professionals add value. Seek an advisor who uses Vanguard, but also

  • helps manage your investment behavior
  • discovers your tolerance for volatility and sets realistic expectations
  • rebalances your portfolio periodically
  • helps with spending strategy
  • offers tax reduction strategies
  • delivers holistic financial planning.

There is more to investing than picking a low cost ETF. Consider working with a professional.

 

 

 

Financial Science Approach to Investing - Dimensional

"Dimensional isn't for everyone, but I frequently come back to Dimensional, because of their sound investment philosophy, which is influenced by Nobel Prize winners.

  • Value: Buy low/Sell high
  • Profitability: Profitable companies can reinvest in growth
  • Small Cap: Smaller companies have room to grow

They employ the above "tilts" across large portfolios with hundreds of global stocks, including U.S. stocks.

Their strategies are back tested and easy for clients to understand and commit to for long-term growth. Valor Capital Management does a nice job blending the Dimensional portfolios together for clients and rebalancing.

Add in tax-management for extra efficiency and you have a nice portfolio that helps clients feel confident.

You'll see other portfolios with lower expense ratios, but Dimensional makes life easier to adhere to a plan, because you feel more confident in your plan that is based on sound and backtested portfolio theory. Combine that confidence with behavioral discipline for a strong foundation toward helping achieve goals.

Too many investors search frantically for a better mousetrap. Dimensonal helps solve that problem, because they did the research and arrived at a reliable answer for prudent investors."

- Tim Haas, CFP®, CIMA®

 

 

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Active Management - BlackRock

BlackRock combines well diversified portfolios, like Vanguards, but they overlay active management.

They use Alladin, a leading risk management technology. Aladdin helps BlackRock portfolio managers identify risks and opportunities - helping build more resilient portfolios and managing exposures over time.

Alladin monitors 3,000+ risk factors. 1,900+ developed and product managers dedicated to Alladin. 275+ of the world's largest financial institutions rely on Alladin.

BlackRock manages over $72B in an array of model portfolios to meet client needs. Their total Assets Under Management (AUM) is $9.0T (trillion dollars).

(Source: BlackRock. All figures as of 3/31/21).

To download the BlackRock Overview file, please press the disk shape button on the upper right portion of the screen.

These three styles are just the beginning of the story.

If there are unique blends of these approaches or even additional strategies that you would like to explore, then custom portfolios can be explored together.

 

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