2.3 One last word!
In 2014, 50% of ETF investors have run a core/satellite
strategy, which represents a 2% increase than 2013 9 . According to
the features of this approach, a higher use will not be surprising. But this
later needs a large amount of invested money. For instance, according to
Quisenberry (2006), the core portfolio can be effectively managed with a
minimum of $250 000 of investment. So a lot of investors cannot implement this
strategy under this constraint.
To implement this strategy, advisers have to take into account
the investor's goal to align the asset allocation with his need. Overall, with
this approach, investors expect to take an advantage in terms of return from
the smart asset allocation and the active manager selection. The cost-and
tax-effectiveness of Exchange-Traded Fund (ETF) can facilitate the
implementation of this portfolio construction.
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