Exchange Traded Funds (ETF) Fixed Income Portfolio
This portfolio is designed to provide income for investors who possess current cash flow needs, yet have a very low tolerance for risk.
The strategy utilized is conservative portfolio management where the account will be invested in several assets classes; namely, domestic and international corporate bonds, U.S. government bonds, state and local municipal bonds, U.S. agency mortgage bonds, and money market/cash reserve funds. Additionally, from time to time a modest allocation to equity may be utilized in the portfolio as a means to neutralize the effects of inflation in an income-focused portfolio.
Generally, MBT managers will purchase domestically issued Exchange Traded Funds (ETFs) that correspond to the price and yield performance of a specified market indices, which are conservative in nature.
Features and Benefits
The portfolio utilizes ETFs that incorporate the following characteristics:
- Intermediate duration (interest rate volatility).
- Low index tracking error.
- Attractive risk-adjusted yields.
- No sales loads and low internal expenses.