Core + Satellite Investing

Core + Satellite Investing

is a method of portfolio construction designed to minimize costs, tax liability, and volatility while providing an opportunity to outperform a broad stock market as a whole. The core of the portfolio consists of passive or other low-cost investment vehicles designed to track the major market indices, such as the Standard and Poor’s 500 Index (S&P 500), Fixed Income and additional base model markets. These Core components are configured to accurately cover exposures to the broad markets. Additional positions, designed to augment overall performance are known as satellite investments, and are added to the portfolio in the form of actively managed investments. There are a wide range of strategies that qualify as Satellite positions.




Actively Managed Dividend Portfolio
Actively Managed Technology Exchange Traded Fund
Actively Managed Country Specific Exchange Traded Fund
*Please keep in mind this is only used as an example for illustration purposes.  The core portion can track any index and the satellite portion is unlimited in its investment options.  

Regardless of the specific investments chosen to fulfill the asset allocation – cost, portfolio volatility, and investment returns are the underlying considerations.

The core-satellite approach provides an opportunity to access both an indexed and an actively managed strategy. Performance, limited volatility and cost control all come together in a flexible package that can be designed specifically to cater to your needs.