Growth Strategy Offers Seven Trump ETFs And ‘Black Swan’ Protection

Posted on: 03/10/2017

iSectors’ CEO Vern Sumnicht talks with  – Investor’s Business Daily

It is no secret that most active managers fail to pick stocks that beat the benchmark S&P 500, but some bright minds think investing in ETFs may do the trick. Wait, those boring old investments that “passively” match the returns of the stock and bond markets?

Oh, yes.

In the hands of select money managers, the humble exchange traded fund is a building block for sophisticated portfolio solutions that help their clients to become more successful investors. The bedrock of these ETF-based strategies is tactical trades to seize market opportunity and systematic risk management to limit losses. The hope is that these packaged portfolios of ETFs will outperform the bogey with less risk over a full market cycle.

Vern Sumnicht was driven to develop an all-ETF strategy after the stock market rout of 2000, when the buy-and-hold approach failed investors.

“Like many other advisors and their clients, we found that when the S&P 500 index went down, every asset class went down” with it, said Sumnicht, the CEO of Wisconsin-based iSectors.

The stock market crash of 2000 shook Vern Sumnicht's faith in traditional portfolio diversification. (iSectors)

The stock market crash of 2000 shook Vern Sumnicht’s faith in traditional portfolio diversification. (iSectors)

Read the article here.

 



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