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Huygens Launches Trio Of Tactical Robo Advisor Strategies

By DailyAlts Staff The automation revolution is sweeping the industrial world, and the asset-management industry is no exception. So-called “robo advisors” have been proliferating; seeking to outcompete human alternatives by providing automated investment guidance at a lower overall price point. But most robo advisors are flawed in design, according to Walt Vester, CEO of Huygens Capital. That’s why his firm has worked to produce a better mousetrap – a 100% automated robo advisor that provides investors with U.S. equity exposure in a “tactical, systematic, risk-managed” manner. Dynamic Models Capture Changing Sentiment “Most robo advisors manage risk by constructing an initial, diversified, multi-asset portfolio for a client, and then maintaining that static asset allocation with periodic rebalancing whenever the portfolio deviates from it,” said Mr. Vester, in a recent statement. “The issue with this approach is that no asset class performs well in all market regimes, so at any time the portfolio has some component with a poor risk/return tradeoff.” By contrast, Huygens Capital’s robo-advisor investment system uses proprietary predictive analytics to monitor market conditions daily , rather than monthly or even quarterly. Equity market sentiment can change quickly in response to changes in economic, political, or other factors, and the system re-assesses conditions at market close each day. Huygens’s robo-advisor investment products – listed below – switch between portfolios of U.S. equity index ETFs and U.S. government bond index ETFs according to the firm’s assessment of institutional money-manager sentiment. When the big managers are bullish, Huygens favors stocks; when they’re bearish, Huygens prefers bonds. From Conservative to Growth Huygens’s three robo-advisor investment products are: Pilot Conservative Tactical Income & Growth , which begins with more balanced allocations to stocks and bonds; Pilot Tactical Growth , which starts out with more equity exposure; and Pilot Tactical Aggressive Growth , which uses light leverage to begin with even more initial equity exposure. All three products switch out stocks for bonds when market stress rises, and vice-versa. By offering portfolios focused on income/growth, growth, and aggressive growth, Huygens’s products can more accurately meet the needs of a wider class of investors. “We believe the key to growing our clients assets is to invest them in U.S. equities while striving to protect against periods of high equity market risk,” said Mr. Vester. “Our approach addresses a need not satisfied by today’s robo advisors: giving clients U.S. equity exposure in a tactical, systematic, risk-managed manner.” For more information, visit huygenscapital.com .

2 Vanguard ETFs For Growth Investing In Retirement

Summary Investing in the retirement phase of your life cycle often requires a different mindset towards generating income. Those investors who want to still pursue a modest degree of growth in their portfolio may want to step outside of the traditional value-focused strategies. Retired investors that choose to supplement their existing portfolio with growth themes should be aware that doing so may come with a higher risk of price volatility. Investing in the retirement phase of your life cycle often requires a different mindset towards generating income or positioning in a more conservative manner. While there is nothing wrong with those pursuits, it may not appeal to those who are more comfortable taking risks or don’t rely heavily on spendable income from their retirement accounts. In my experience, there is no such thing as a “one size fits all” approach to investing. Rather your portfolio should align with your individual risk tolerance, investment objectives, and time horizon. Those factors will play an important role in designing a strategy to meet or exceed your expectations over the long haul. Those investors who want to still pursue a modest degree of growth in their portfolio may want to step outside of the traditional value-focused strategies that lean towards high income generation . This may also provide a unique dynamic that fosters surplus capital appreciation during favorable market trends. Fortunately, there are two Vanguard ETFs that offer attractive characteristics for achieving this endeavor. Mega Cap Growth The Vanguard Mega Cap Growth ETF (NYSEARCA: MGK ) is a low-cost option for those that want to access 150 of the largest growth-oriented stocks in the United States. Top holdings in MGK are companies such as Apple Inc (NASDAQ: AAPL ), Google Inc (NASDAQ: GOOG ) and Facebook Inc (NASDAQ: FB ). Not surprisingly, the technology sector makes up 25% of this index, while consumer discretionary stocks add another 23%. What you won’t find much of are utility, energy, and telecommunication companies. The stocks in MGK are some of the biggest and savviest companies on earth. Their successful business models have allowed them to stand out and thrive, which in turn is reflected in their overall market share. They will likely continue to focus on expanding or refining their products and services rather than returning capital to shareholders in the form of dividends. A fund such as MGK is going to be driven by more cyclical trends in high growth areas rather than a balanced sector dispersion such as you would find in a benchmark like the SPDR S&P 500 Trust ETF (NYSEARCA: SPY ). Nevertheless, this ETF has the potential for outperformance during strong bull markets and may offer the opportunity to overweight your portfolio towards consumer-driven themes. In addition, it’s ultra-low expense ratio of just 0.11% annually makes it a very affordable investment vehicle to own. Dividend Growth Dividend growth is another area of the market that is often overlooked by retirees . That is because the associated yields of these companies are typically lower than other areas of the equity income universe. Yet despite this facet, companies that have consistently declared year-over-year increases in their dividends have stable cash flow and resources to support growth in other areas. The Vanguard Dividend Appreciation ETF (NYSEARCA: VIG ) is a core holding in both of our flagship growth and income portfolios . This fund is based on the NASDAQ Dividend Achievers Index, which identifies large-cap companies with a consistent track record of growing dividend payments. VIG currently has an underlying portfolio of 180 stocks with top holdings in Microsoft Corp (NASDAQ: MSFT ) and Johnson & Johnson Inc (NYSE: JNJ ). Consumer staples and industrial companies are two sectors in this ETF that each represent a substantial 21% of the index. This ETF currently has a yield of 2.44% and sports a rock bottom expense ratio of 0.10%. The combination of broad diversification amongst a group of high quality stocks with favorable fundamental attributes make VIG a solid candidate for growth seekers. The Bottom Line Retired investors that choose to supplement their existing portfolio with growth themes should be aware that doing so may come with a higher risk of price volatility. That means position size and asset allocation should be carefully evaluated to ensure you don’t become overly focused on one area of the market. Keeping a balanced portfolio structure in other assets exhibiting lower volatility or non-correlated returns will help mitigate these risks and ensure you reach your long-term goals.

4 Top-Ranked Technology Mutual Funds For High Return

The technology sector is more likely to report above par earnings than other sectors as the demand for technology and innovation remains high. However, technology stocks are considered to be more volatile than other sector specific stocks in the short run. In order to minimize this short-term volatility almost all tech funds adopt a growth management style with a focus on strong fundamentals and a relatively higher investment horizon. Investors having an above par appetite for risk and a fairly longer investment horizon should park their savings in these funds. Below we will share with you 4 buy-rated technology mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect these mutual funds to outperform their peers in the future. Columbia Seligman Global Technology Fund A (MUTF: SHGTX ) seeks long-term capital growth. SHGTX invests a major portion of its assets in equities of technology companies located throughout the globe. SHGTX invests across a wide range of countries. SHGTX invests a minimum of 40% of its assets in foreign companies that are not traded in the US. The Columbia Seligman Global Technology A is a non-diversified fund and has returned 21.3% over the past one year. SHGTX has an expense ratio of 1.46% as compared to the category average of 1.47%. BlackRock Science & Technology Opportunities Portfolio A (MUTF: BGSAX ) invests the majority of its assets in equity securities issued by domestic and foreign science and technology companies. BGSAX may invest a maximum 25% of its net assets in emerging economies. BGSAX generally invests in common stocks but may also invest in preferred stocks and convertible securities. The BlackRock Science & Technology Opportunities Investor A has returned 19.3% over the past one year. As of August 2015, BGSAX held 158 issues with 6.41% invested in Apple Inc. (NASDAQ: AAPL ). Fidelity Advisor Electronics Fund A (MUTF: FELAX ) seeks capital appreciation. FELAX invests a large portion of its assets in common stocks of companies whose primary operations are related to electronic components, equipment vendors, electronic component manufacturers, electronic component distributors, electronic instruments and electronic systems vendors. Investments are made in both domestic and foreign companies. FELAX uses a fundamental analysis to select companies for investment purposes. The Fidelity Advisor Electronics A is a non-diversified fund and has returned 21.2% over the past one year. FELAX has an expense ratio of 1.27% as compared to the category average of 1.47%. T Rowe Price Global Technology Fund (MUTF: PRGTX ) invests a major portion of its assets throughout the world in the common stocks of companies that derive their revenues from the development, advancement, and use of technology. PRGTX invests in a minimum of 5 countries and a minimum 25% of its assets are invested in foreign companies. PRGTX invests in firms with an established track record. The T Rowe Price Global Technology Fund has returned 21.2% in the last one year. Joshua K. Spencer is the fund manager and has managed PRGTX since 2012. Original Post Share this article with a colleague