We believe that the investments we have selected represent broad and diverse coverage of the asset class(es) they represent. We select securities that have low total holding costs, are highly liquid (so it is easy to sell for withdrawals or rebalancing), are tax efficient (which improves your after-tax returns), and have low tracking error (how closely the fund follows its benchmark). For our Ellevest Impact Portfolios, we seek investments with similar characteristics that offer financial returns as well as social returns by advancing women.
We thought carefully not only about picking individual ETFs and mutual funds, but also about how these funds would work together effectively in the context of your total portfolio. We have designed this mix of investments - to provide you with a portfolio to help you reach your goals. For example, rather than choose 3 individual ETFs to cover large, mid, and small cap US equities, we chose a single ETF that provides very low cost, broad, diversified exposure to all three, and combined that with a smaller allocation to a mid-cap ETF. Together, this combination we believe may result in the desired asset class exposures, but at lower cost and higher tax efficiency.
For more information about our investment strategy, please visit our Personalized Portfolios page.