| ETFs
are baskets of securities that track specific indexes, but
increasingly investment styles, industry sectors, regions,
countries or commodities. ETFs trade like individual stocks
on the major stock exchanges. Using ETFs allows Main Management
to create comprehensive investment portfolios with broad
diversification at a minimal expense.
ETFs offer:
| diversification |
- |
baskets of individual securities |
| transparency |
- |
know what you own, real
time pricing |
| low expense ratios |
- |
high expense ratios adversely
affect performance |
| tax efficiency |
- |
minimize effect of capital
gains distributions |
| liquidity |
- |
volume does not equal liquidity |
| modularity & strategies |
- |
enable strategic asset
allocation or tactical precision |
Realizing that markets,
not security selection produce returns, Main Management
lowers individual issue selection risk (remember Enron),
reduces portfolio turnover and excessive transaction costs
that so often fails active stock managers. As investors,
we are not looking to find the needle in the haystack, but
looking for the right haystack.
|
