With over 7 000 ETF’s available we have to screen this universe to ensure that investors are invested in ETFs that are most appropriate for them.
The process involves:
Efficiency – Can we trust it?
Tradability – Can we trade it?
Fit – Is it the market we want to buy?
Magwitch researches, builds and monitors the portfolio using ETFs and focuses on the following criteria:
• Transparency – sight of all holdings and non-complicated structures.
• Risk – avoid counterparty risk using ETFs with no hypothecation, leverage or derivative structures.
• Tracking error – back test all ETFs to ensure a low tracking error and monitor against their benchmark.
• Fund Size – use the largest ETF issuer’s, with very high liquidity.
• Cost – without comprising on quality, use lower costs to provide the most optimal solution.