DIY Investor Magazine
/
2015 Issue
35
Well-Grounded Model Portfolios
To get you started, justETF features model portfolio
strategies for equity, bonds and commodities that
can form the basis of your global multi-asset ETF
portfolio. Experienced users can tweak these models
by adjusting weightings or adding or removing ETFs to
suit.
Portfolios have their own risk and return profile, which
you should understand before investing. justETF offers
historic return simulation in its portfolio planning tool.
Past returns do not necessarily provide an insight about
future returns, but at least you can understand how
those returns were achieved.
AUTOMATIC ORDER GENERATION
Once you have decided on a portfolio, it is tedious to
calculate all the necessary transactions required to buy
it. The same is true of later portfolio adjustments, when
selling is also required. justETF does these calculations
for you. You can even specify your broker’s fee to
correctly reflect the costs. justETF is compatible with
any broker. It replicates your real portfolio or enables
you to run a ‘paper’ version of any ETF strategy you’d
like to track.
CONTINUOUS MONITORING AND REBALANCING
Recent volatility has shown portfolio monitoring is vital.
Our platform always up-to-date reports on returns,
risk, and portfolio allocation. It also features detailed
attribution analysis. You can even steer your portfolio by
setting investment limits at the asset class level, as well
as individual thresholds.
Fig 2 justETF Portfolio Planning Tool
There’s a major change in the markets? You will be
informed via email, and can then rebalance your
portfolio with just a few clicks. You can do the same
thing for cash that’s added, too. Many passive investors
rebalance their portfolio allocations at the start of
each year. But what if the market goes haywire in-
between? The alternative is a bandwidth approach,
where you take action if your asset allocation veers
off-course, and perhaps even profit from such volatility.
Bandwidths are automatically set to +/- 5% fluctuations
around your strategic allocation, so they are unlikely
be triggered more than two or three times a year. The
limits can be adjusted as you see fit.
PROFESSIONAL AND INDEPENDENT GUIDANCE
With its powerful tools and deep knowledge base,
justETF offers professional and independent assistance
with your investing, regardless of whether you follow
a passive or active ETF strategy. It is more than a
tool. It enables you to implement a fully-fledged
personal investment strategy that tilts the odds in your
favour, with lower fees and far fewer hours than you’d
spend researching and implementing an active fund
approach. For more information visit
Despite this many investors still use several specialist
active managers to invest in each asset category. Such
diversity simply increases the chances of lagging the
market. Another approach is to outsource decision-
making to a multi-asset manager. But again their mix
of funds is likely to at best replicate the market, only
now there are two layers of fees to pay. justETF is an
online tool that supports the (superior) ETF approach. It
makes it easy for you to create and test your own ETF
portfolios that you can then replicate.
FINDING THE RIGHT ETF
There are around 800 ETFs listed on the London Stock
Exchange. Competition has helped drive down costs,
but also made it necessary to compare products.
justETF’s screening tool provides filters to help you
comb through your personal ETF universe. As well as
general data like fund size, it contains ETF specific
information such as the replication method employed.
It features line charts so you can compare the returns
of different ETFs, and gives access to fee and risk
comparisons.
