Begin the Process of Developing Investment Solutions
 
 

Investment Strategies

Build Financial Strength with Strategy


innovatETF Strategies®

The innovatETF Strategies seek to deliver competitive risk-adjusted returns over a full market cycle, while reducing portfolio volatility and minimizing downside risk when possible. The strategies start with a long-term strategic neutral allocation to five asset classes (U.S. Equities, Non-U.S. Equities, Fixed Income, Real Estate, Alternative Investments, and Cash) based on long-term (strategic) risk tolerance and return requirements that can be over or under-weighted on a shorter-term (tactical, dynamic) basis. The investment process for making asset allocation and security selection decisions includes a proprietary quantitative model, as well as qualitative analysis evaluated by an experienced team of portfolio managers. There are seven strategies segmented by strategic risk/return objectives -- Defensive, Income Growth, Conservative, Balanced, Growth, ESG Growth & High Growth. Exchange Traded Funds (ETFs) are the securities used to express the asset allocations underlying positions.

  • U.S. Equities - large-cap, mid-cap, small-cap, growth, value

  • International - developed markets, emerging markets, regions and/or countries

  • U.S. Fixed Income - corporate, government, high yield, agency, municipal

  • Real Estate - real estate investment trusts

  • Alternatives - metals, other commodities, absolute return funds, opportunistic investments

  • Cash - cash and short-term cash equivalents

 
 
 
Screen Shot 2024-08-26 at 3.10.42 PM.png
 
 

Asset Allocation

 


Defensive

This portfolio with a fixed income bias, may be appropriate for investors with a cautious risk tolerance and/or shorter investment time horizon. The focus of the strategy, primarily utilizing ETFs, is to mitigate overall volatility and provide downside protection, while producing total investment returns consistent with a more conservative portfolio over a market cycle.

Conservative

This portfolio may be suitable for the cautious investor, one with a lower risk tolerance and/or shorter investment time horizon. The portfolio combines modest potential for capital appreciation with potential for downside protection by investing in a diversified portfolio, generally with a fixed income bias.

Income Growth

This portfolio may be suitable for the investor looking for current income and income growth, with a secondary consideration of capital appreciation. This strategy seeks to provide above market income stream and temper volatility by exposure to dividend paying securities through investments, primarily in domestic and international Equity and Fixed Income ETFs, REITs and some alternatives.

Balanced

This portfolio may be suitable for the investor who wants to achieve steady growth, while limiting fluctuation to less than that of the overall stock market. The portfolio combines investments primarily in equity and fixed income ETFs to provide investors with balanced and varied exposure to the stock and bond markets. This portfolio may be appropriate for investors who primarily seek long-term capital appreciation with a more moderate risk profile.

Growth

This portfolio may be suitable for investors with a relatively high tolerance for risk and a longer investment time horizon. The main objective of this portfolio is capital appreciation, and investors should be able to tolerate fluctuations in their portfolio values. While this portfolio will experience volatility similar to that of the equity markets, exposure to fixed income markets may lower the volatility relative to an all-equity portfolio.

High Growth

This portfolio may be suitable for investors who have both a higher tolerance for risk and a long-term investment time horizon. The main objective of this portfolio is to construct a high growth portfolio. Investors should be able to tolerate substantial fluctuations in portfolio value from year to year. The portfolio seeks long term capital appreciation through investments primarily in domestic and international ETFs.

 
 
 
 

 Equity Strategies

 


Large Cap Core Growth

This equity portfolio consists primarily of large-cap U.S. equities representing multiple sectors and/or industries and includes securities characteristics of the S&P 500 Index.

Large Cap Core

This equity portfolio consists primarily of large-cap U.S. growth equities representing multiple sectors and/or industries and includes securities characteristics of the S&P 500 Index and the Russell 1000 Growth Index. The strategy focuses on higher growth and lower income-generating investments.

Equity Income

This portfolio consists primarily of large-cap U.S. equities representing multiple sectors and/or industries and includes securities characteristics of the S&P High Yield Dividend Aristocrats Index. The Index is “designed to measure the performance of the 60 highest dividend yield S&P Composite constituents, which have followed a managed dividends policy of consistently increasing dividends every year for at least 25 years.” The Strategy has a yield target of at least 1.5x that of the S&P 500 Index. The portfolio has a minimum target to invest 90% of holdings in dividend paying securities.

 
 
 
Screen Shot 2024-08-20 at 4.30.00 PM.png
 
 

Environmental, Social &
Governance (ESG) 

This portfolio integrates ESG considerations characteristics and analysis into our investment decision-making process, at both the individual security and holistic portfolio level; while excluding stocks of specific companies involved in certain business models such as alcohol manufacturers, tobacco manufacturers, gambling, adult entertainment, and providing abortions as a means of birth control. Companies are automatically excluded if any of these activities are greater than 10% of a company’s total revenues. Portfolios are constructed to have overall ESG characteristics. GLOBALT utilizes a third-party ESG information provider, Sustainalytics, for its quantitative ESG metrics and characteristics. The process specifically excludes stocks of all companies that are in Sustainalytics Severe Risk category (Risk Score of 40 and above). The Risk Rating Score is evaluated in the context of its Sector Peer scores and factors of the overall portfolio.

 
 
 
 
 
 

Let's talk about your financial goals.