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AlphaClone's Active indexes combine all the benefits of passive investing while still seeking to outperform the overall market over time.
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To help investors take advantage of active indexing, we recently launched AlphaClone Mirror Portfolios, an affordable and holistic wealth advice solution that is tailored to adjust to your investment objectives and risk tolerance as you approach your retirement goals. .
AlphaClone Active Index - YTD Summary as of September 30, 2017
Hedge Fund Downside Hedged Index (ALPHACLN).
+18.8% YTD vs. +14.2% for the S & P 500 (SPY)
The index continues to outperform by a wide margin for the year. Performance this year has been largely driven by overweight allocations to the technology sector and timely adjustments to exposures to healthcare and financial stocks.
International Downside Hedged Index (ALFIIX).
+29.5% YTD vs +21.1% for the MSCI AC World ex-USA (ACWX).
The index continues to outperform by a wide margin for the year. Performance has been largely driven by overweight exposure to emerging market stocks with a particular emphasis on technology and healthcare stocks.
Small Cap Index (ALFSIX).
+15.5% YTD vs. +11.0% for the Russell 2000 Index (IWM)
Despite a 6.2% return for the Russell 2000 in September, the index maintains its outperformance for the year. Performance attribution is well dispersed across several sectors including industrial goods, technology, financials and healthcare.
Activist Manager Index (ALFDIX).
+21.2% YTD vs. +14.2% for the S & P 500 Index (SPY)
High conviction holdings from our group of activist managers outperformed the market slightly in the month (2.2% vs 2.1%) and by an impressive 700 basis points year to date. Performance in the index is largely driven by overweight exposure to healthcare stocks, one of the year's best performing sectors so far.
Value Manager Index (ALFVIX).
+19.3% YTD vs. +8.9% for the Vanguard Value ETF (VTV).
The index slightly outperformed its benchmark for the month (3.7% vs 3.0%) and is outperforming value stocks by nearly 3 to 1 on a year to date basis. Index performance is largely driven by exposure to consumer goods and financial names.
Active Indexing Investment Case
What is an active index?
Active indexes offer the benefits of index funds while still seeking to outperform the overall market
Why should I consider active indexing?
Over the long term, active indexing has outperformed both the market and traditional active funds
How can I use active indexing in my portfolio?
Use active indexes to diversify your investment style exposure while avoiding the inefficiency and high fees of traditional active funds.
Allocating to active indexes can improve your portfolio's long-term results
Controlling costs is one of the most important determinants of investment success
The table below summarizes the average fees for a model moderate risk portfolio that invests $500,000. Fees for the average traditional advisor and fund expenses comes from the 2016 InvestmentNews Financial Study of Advisory Firms, a survey of 500+ RIAs. Fees for Betterment come from an analysis conducted by Investor Junkie.
See the full PDF below.
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