iSectors Blog


The Trouble with Mutual Funds

By Vern Sumnicht, MBA, CFP® Although mutual funds offer a package of professional management and diversification, they also have significant problems, including high fees, hidden costs, uncertainty of holdings and uncertainty of taxes. Volumes have...

Correlation Convergence is Hurting Your Investment Performance

By Vern Sumnicht, MBA, CFP® What is Correlation? Correlation is a statistical term that helps describe the relationship between two investments, enabling an investor to determine how similar two investments are to each other....

Finding Appropriate Investment Strategies for Client Portfolios

By Chuck Self – CIO/COO, iSectors® LLC Financial advisors (FAs) utilizing outsourced investment management processes face a significant number of choices.  Recently, there were 675 exchange-traded fund (ETF) investment strategists in Morningstar’s database.  How does...

How financial advisors can provide the correct pattern of returns for their clients

By Chuck Self A financial advisor’s clients have a myriad of needs that he or she continually look to satisfy. For a financial advisor, it all boils down to providing an attractive pattern of returns throughout bull...

Have You Reviewed Your ETF Strategist Recently?

iSectors® Post-MPT Growth Allocation Featured in Barron’s on August 2, 2014 In the article, the Barron’s columnist, Brendan Conway, discusses the growing use of ETF strategist models by advisors to meet their clients’ goals....

More insight on rising mutual fund tax bills…

Many advisors aren’t aware that the pass thru capital gains distributions of actively managed mutual funds are not included as part of the funds expense ratios. In addition to this, the trading fees inside...

The iSectors Quarterly Summary – 2Q 2014

In case you missed it, or just want to listen in again, watch the replay of iSectors’ 2Q 2014 presentation summary here… iSectors’ CEO, Vern Sumnicht, commented:  ” … great results especially iSectors Post-MPT Growth Allocation...

How much do 401(k) participants really need to invest?

By Chuck Self It is sad to see how little 401(k) participants have in their accounts compared to what they need.  This article, The Average 401k Balance By Age (PersonalCapital.com), discusses the shortfall and...

How the structure of an ETF reduces management fees, commissions, and taxes

By:  Vern Sumnicht, MBP, CFP® Mutual Funds vs. ETFs Similar to mutual funds, exchange-traded funds (ETFs) are a diversified portfolio of individual securities (stocks and/or bonds). However, while ETFs are similar to mutual funds...

Why are ETFs becoming more popular in 401(k)s?

Vern Sumnicht recently responded to a 401(K) LinkedIn Group discussion. We thought we’d share his thoughts/reaction to this question directly here on the iSectors blog: Why are ETFs becoming more popular in 401(k)s? Regular...