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ETF Program

ETF Portfolio Management

Exchange Traded Funds (ETFs) are a smart and efficient way to invest. They offer investors the diversification and simplicity that are inherent to mutual funds while also offering the liquidity of common stocks. Borthwick Associates believes that an ETF portfolio is a great way to achieve diversification, growth and affordability for investors.

Please continue reading to learn more about ETFs and discover how our ETF Portfolio Management Program can benefit you.

What Are ETFs?

Exchange Traded Funds (ETFs) are baskets of securities designed to track a broad stock market index (i.e. large cap growth, small cap value) or market sector (i.e. energy, technology) or region of the world (i.e. China, Europe, Mexico). ETFs have exploded in popularity since they were first introduced in the early 1990s. Reasons for their wide acceptance include all-day trading flexibility, tax efficiency, low cost structure and diversification properties.

Why Should I Invest In Borthwick’s ETF Management Program?

By utilizing ETFs, Borthwick is able to offer individuals with smaller amounts of capital the benefits of a professional money manager. Traditional stock portfolios generally require a large minimum asset base to ensure proper portfolio diversification. ETFs allow us to use our expertise to track the best performing areas of the market and apply that knowledge to outperform market benchmarks even in smaller accounts.

This program is also ideal for investors looking to reduce the amount of paperwork they are receiving from various custodians or previous employers. Borthwick will help you consolidate several smaller IRAs and Rollovers into one manageable account at our preferred custodian, Fidelity Investments. Borthwick’s relationship with Fidelity Investments entitles our clients to discounted brokerage fees.

By utilizing Borthwick Associates, investors can take comfort in knowing that their assets are being professionally managed as one cohesive and easy to understand portfolio.

How Will My ETF Portfolio Be Managed?

Borthwick Associates will design a portfolio of five to seven ETFs that will be adjusted quarterly for changing market dynamics. This portfolio will take advantage of our firm’s 30+ years of experience in identifying and selecting themes and sectors that we believe have the greatest potential to outperform the general market. History suggests that being in the right sectors, while avoiding the wrong ones, can contribute greatly to portfolio success.

What Is The Management Fee?

The annual management fee for our Exchange Traded Fund Product is 1.25% of the assets under management, paid quarterly in advance. The fee can be conveniently deducted directly from your account. Investors may cancel this contract at any time and receive a refund of any unearned fees.

Investors are cautioned that all ETFs have inbedded management fees. These fees typically range from .10% to .90% and can be found on the issuer’s website. Additional trading costs of $7.95 per trade will be incurred by investors on each purchase or sale. Borthwick Associates does not share in fees charged by either the ETF or Fidelity Investments.