Our Strategic Advantage
The edge you will get with Paisley Financial lies within our strategic design to Capital Management. Our Trilateral Active Management approach is our optimal way to achieve maximum diversification & growth, as it encompasses all of our active management capabilities into a single, engine.
Active Strategic Management
- Growth Strategies
An aggressive portfolio strategy mostly comprised of our top growth stocks which aims to maximize capital growth. Risk is typically managed through the use of a well-diversified stock portfolio.Learn More
Strategies that attempt to achieve growth but is averse to taking on large amounts of risk by tilting towards stocks, up to 60%. Growth is placed as the primary emphasis and current income as their secondary emphasis though may change depending on prevailing market conditions.Learn More
An amalgam of fixed income & short term revenue generating instruments that are focused on low risk objectives. The investments sought are of a high yield with a steady dividend history. Option strategies may be use to grind out additional gains or to work as a volatility hedge.Learn More
Hedge Fund Style (Long/Short)
Our Trilateral Active Management approach is our optimal way to achieve maximum diversification & growth, as it encompasses all of our active management capabilities into a single, engine. The strategy incorporates all of our fixed income, currency, equity and commodity trading strategies we have developed into a model that will ebb and flow with volatility, growth, recessive interruptions or trends and all invested in a securities-only product.Learn More
Active versus Passive Management
Active management is the art of stock picking and market timing. Passive management refers to a buy-and-hold approach. Buy and Hold worked well enough until 2008 when the DOW dropped 37% and has still not recovered. To understand the right choice for you, please learn more below.Learn More
An (ETF) is an exchange-traded fund and is an
investment fund traded on stock exchanges, much like stocks.
An ETF holds assets such as stocks or bonds and trades at
approximately the same price as the net asset value of its
underlying assets over the course of the trading day. Most
ETFs track an index, such as the S&P 500 or MSCI EAFE. ETFs
may be attractive as investments because of their low costs,
tax efficiency, and stock-like features.
ETFs generally provide the easy diversification, low expense ratios, and tax efficiency of index funds, while still maintaining all the features of ordinary stock, such as limit orders, short selling, and options. Because ETFs can be economically acquired, held, and disposed of, some investors invest in ETF shares as a long-term investment for asset allocation purposes, while other investors trade ETF shares frequently to implement market timing investment strategies.
Some Advantages are:
ETFs generally have lower costs than other investment products because most ETFs are not actively managed and because ETFs are insulated from the costs of having to buy and sell securities to accommodate shareholder purchases and redemptions. ETFs typically have lower marketing, distribution and accounting expenses, and most ETFs do not have 12b-1 fees.
ETFs can be bought and sold at current market prices at any time during the trading day, unlike mutual funds and unit investment trusts, which can only be traded at the end of the trading day. As publicly traded securities, their shares can be purchased on margin and sold short, enabling the use of hedging strategies, and traded using stop orders and limit orders, which allow investors to specify the price points at which they are willing to trade.
ETFs generally generate relatively low capital gains, because they typically have low turnover of their portfolio securities. While this is an advantage they share with other index funds, their tax efficiency is further enhanced because they do not have to sell securities to meet investor redemptions.
Market Exposure and Diversification:
ETFs provide an economical way to rebalance portfolio allocations and to "equitize" cash by investing it quickly. An index ETF inherently provides diversification across an entire index. ETFs offer exposure to a diverse variety of markets, including broad-based indexes, broad-based international and country-specific indexes, industry sector-specific indexes, bond indexes, and commodities.
ETFs, whether index funds or actively managed, have transparent portfolios and are priced at frequent intervals throughout the trading day.
Some Disadvantages are:
Correlations which address how well the ETF actually mirrors the underlying instrument can get skewed as volatility increases. Some of the 2x and 3x ETF's can be off their correlation so much that its hard to see any correlation between them.
If you can invest in the actual instrument, why would you want to invest in something that tries to emulate the instrument? An example would be the ETF (USO) U.S Oil Fund and the actual Crude Oil Market which it emulates.
There are times when ETF's can make sense in a portfolio and other times when the Actual underlying asset makes more sense. Learn more about ETF's from a Paisley Advisor to see if they are the right investment for you.