Looking for a Low Cost Way to Outshine SPY with Less Risk?

By MBA, CFP® - Chief Executive Officer, Vernon C. Sumnicht on September 21, 2016

My 2016 report describes a risk/return comparison of the very low-cost ETF (symbol) SPY an S&P 500  index fund and iSectors Post-MPT Growth Allocation.

I’d like to call your attention to the following points of interest in the attached report:

  1. This report compares the ultra-low cost ETF (symbol) SPY an S&P 500  Index Fund (Current) to an investment in iSectors Post-MPT Growth Allocation Model  (Proposed).
  2. Note: Page 4 – The substantially greater diversification found in the iSectors Post-MPT Growth  Allocation.
  3. Note: Page 8 – Graph shows risk (horizontal) and return (vertical). (Current) ETF (symbol) SPY an S&P 500 Index Fund is plotted as a gray diamond with circle around it. The iSectors Post-MPT Growth model’s risk/return is plotted by a black diamond (Proposed).vernsumnichtpost-mptpost
  4. Note: Page 8 – The (Proposed) portfolio invested in the iSectors Post-MPT Growth model has less risk and more return than the SPY Index ETF.
  5. Note: Page 11 – The level of losses (drawdown) during the 2008 – 2009 market correction. It shows that the iSectors Post-MPT Growth Allocation investment had a loss of 28% versus the loss of 45% that was experienced by investors in SPY.
  6. As impressive as these results are… even more impressive is the use of Post-MPT in combination with stocks and bonds in an investment portfolio. The low correlation between stocks, bonds and iSectors Post-MPT Growth results in impressive synergies reducing risk and increasing return.

There is much more I could point out  however these may be some of the points most important to many investors. Comment below if you have further questions. You may also contact Scott Jones iSectors Director of Business Development via [email protected] or at 1.800.869.5184 for further information.

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