Which ETFs Are Optimal for VHNW Investor Portfolios?

In the early days of the ETF industry, the vast majority of funds tracked well-known equity benchmarks, such as the S&P 500, Russell 1000, and Dow Jones Industrial Average. As the benefits of ETFs have become more widely known and understood, the number of issuers and ETFs has increased significantly, and so has the scope of asset class exposure available through ETFs.

One of the most glaring misconceptions about ETFs is that they are best suited for “plain vanilla” investor portfolios: those holding (approximately) 65% equities (split between domestic and international funds), 20% fixed income, 10% real estate, and 5% cash. While the majority of ETF assets are allocated to traditional investment strategies and asset classes, there has been a great deal of innovation to the industry in recent years, resulting in ETFs that implement increasingly complex and unique investment strategies. Financial advisors managing accounts of very high net worth individuals have a tendency to dismiss ETFs as a viable option for their wealthiest, most risk-hungry clients. But anyone who does so risks overlooking investments that may be excellent matches for high net worth individuals.

Free Registration Required to Continue Reading

To continue reading this article, you must be an ETFdb member. Please login or join for free to continue reading. There are several benefits to becoming an ETFdb member today:

  • Register on ETFdbGet instant access to exclusive content. (Individual investors will benefit from our free ETF investing guide; financial planners can use the Financial Advisor & RIA Center.)
  • Get unlimited access to all of our free and exclusive ETF tools, portfolios, and research.
  • Make your voice heard: comment on news stories, analysis, and ETF message boards.

Join Now (it's free and only takes a moment) ยป