Exchange Traded Funds (“ETF”) Strategy

An Exchange Traded Fund (ETF) is a basket of common stocks designed to replicate a particular index, segment, or sector of the market. The performance and risk of each ETF closely matches the performance and risk of the particular index, segment, or sector being replicated. It has been customary to mix and match different mutual funds to obtain a diversified equity portfolio but with the evolving of ETF’s it has become more efficient and cost-effective to use ETF’s instead of mutual funds.

DBIA has developed a diversified portfolio comprised of ETF’s with the objectives of consistent returns with low risk and volatility. There are four parts to the portfolio: market indexes, market segments, economic sectors, and international indexes. Areas to invest and changes within those areas are based on our fundamental and market analysis, and the output of our price momentum model, which helps us make decisions on when to buy and sell a particular ETF.

DBIA believes our ETF portfolio will produce consistent risk adjusted returns. The portfolio will be more tax efficient and cost effective than a portfolio of mutual funds.  While we are taking some additional risk in the segment and sector parts to increase the performance of the portfolio the risk is measured and controllable.


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