3 Model Portfolios, A New Way to Diversify

  • Model portfolios have been growing in popularity in recent years, with many large investing platforms now offering an increasingly wide variety of model portfolios.
  • Durig Capital explores the reasons why.

Durig Capital is excited to introduce three new model portfolio strategies composed of a variety of ETFs, Mutual Funds, and Index Funds.  Model portfolios have been growing in popularity in recent years, with many large investing platforms now offering an increasingly wide variety of model portfolios.

In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets. If asset prices do not change in perfect synchronicity, a diversified portfolio will have less variance than the weighted average variance of its constituent assets, and often less volatility than the least volatile of its constituents.

One of the key benefits that model portfolios can offer investors is a quick and simple method of diversifying across many areas of the market; a single Mutual Fund or ETF may encompass several different industries or market sectors.  Another favorable aspect of a model portfolio is the ability to rebalance quickly and efficiently, allowing for more agile portfolio management.

Leveraging the models of managers whose specialized skill sets differ from those of our own allows us to offer a more holistic approach to managing client investments while still keeping costs down.

While there is still an income component contained within these model portfolios, they tend to lean more towards offering investors increased exposure to equity markets and primarily target growth and income.  An overview can be found below for each model portfolio below.

MultiStrategy 75-25

Strategy Overview: This multistrategy model participates in U.S. Equity trends by allocating 75% to U.S. Equity Markets that are outperforming the market, while also featuring a tactical fixed income component through an allocation of 25% to fixed income through a rotating mix of High Yield, Treasury Notes and Cash Equivalents.  The strategy aims to offer investors with tactical exposure to fixed income markets, seeking total return, income, and capital appreciation via U.S. Equity.

This method allows investors to analyze the market from the big picture all the way down to individual stocks. This differs from the bottom-up approach, which begins with individual stocks’ fundamentals and eventually expands to include the global economy.

Key Benefits:

  • Designed for Growth and Income
  • Participate in U.S. Equity Trends
  • Utilizes a Flexible Bond Approach

A Note from the Manager:

“The [equity component of the] strategy is grounded in a quantitatively based relative strength research process. It seeks to identify and participate in the leading U.S. equity styles (growth & value), factors (such as momentum, volatility, and quality), and market capitalization (large, medium and small).”

“Pursue opportunities in the high yield sector while having the ability to allocate to safer fixed income sectors when indicated…. [The fixed income component of the] strategy is comprised of three fixed income sectors (high yield bonds, Treasuries and short-term Treasuries/cash equivalents). The strategy employs a ‘top-down‘ quantitative relative strength research process to rank the investment universe based on strong relative performance or momentum.”

Holdings

Historical Performance

Return Period

YTD

Trailing 1 Year

Trailing 3 Year

Trailing 5 Year

Return

7.62%

3.87%

11.16%

8.47%

Commission Free Global Dividend Portfolio

Strategy Overview: This 100% equity-based strategy targets the capture of high dividends through a mix of 10 Domestic and Global dividend-based ETFs.

Key Benefits:

  • Growth and high levels of dividend income
  • Targeting high dividend yields through diversified allocation of stocks via dividend-based ETFs

A Note from the Manager:

“This strategy provides exposure to a diversified allocation of stocks using dividend-based ETFs. It seeks to provide capital appreciation and high current dividend income, through a globally diversified set of dividend income-oriented equity ETFs.”

Historical Performance

Return Period

YTD

Trailing 1 Year

Trailing 3 Year

Trailing 5 Year

Return

11.80%

1.55%

8.97%

5.32%

Durig’s Model Portfolio

Strategy Overview: This model seeks growth and contains a mix of eight  mutual funds and ETFs, encompassing both International and Domestic Equity and Fixed Income.  The model was initially built in the mid-2000’s and is being brought back to life in an effort to offer clients another way to grow their wealth and current income.

Holdings

Key Benefits:

  • A mixed strategy designed for Growth and Income
  • Increased exposure to equity with some exposure to fixed income

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If you have questions about any of the model portfolios described above or would like additional information, please do not hesitate to contact Durig Capital at (971) 864-6115 or email us at info@durig.com.  We welcome any questions you may have.

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Durig's FX2

Durig's FX2 Is A High Yielding, Short Term, Low-Cost, Managed Income Portfolio, designed for performance. The FX2 Portfolio specializes in converting raw wealth into much higher levels of income, and in turn, increased quality of life for clients. Durig’s FX2 Portfolio has, over time been known to have historic periods of significant outperformance. As a fiduciary first and foremost, we provide our Advisory clients with a personalized fiduciary service at a very low-cost. Ask about our many services today!
http://fixed-income2.com/

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