Investment approach | ESG ETF Portfolio Management Solution SWM

technical- and quant-based investing

Secure Wealth Management’s investment approach combines asset selection, based primarily on technical criteria, with quantitative risk management.

SWM works with BlackRock, the world’s largest asset manager, in our ETF portfolio construction and ESG ETF selection process.

We invest according to a range (typically 12-15) of technical trading signals. No investment decision will be executed unless the technicals suggest the timing is correct. We have a core / satellite structure, where each component is actively managed.

Risk management

FNA US dollar negative outlier

Dollar-negative-outliner-secure-wealth-management

Risk management is at the heart of our investment approach

We employ network analytics techniques supplied by Financial Network Analytics, our strategic partner for risk management. Using FNA’s software, we track a broad range of statistical indicators for our ETF universe. These highlight entry- and exit-points for our ETF portfolios.

For every potential new ETF that we take into our portfolios, we will closely examine the correlation with the other positions and the impact on overall portfolio volatility, beta and Sharpe ratio. For all ETFs held in our portfolios we carry out ongoing correlation and volatility analysis to highlight changes in the time series of these variables.

HOW DO WE CHOOSE THE ETFs IN OUR PORTFOLIOS?

We only use replication ETFs, which are a simple and transparent instrument. We do not use any synthetic, leveraged or inverse ETFs.

Liquidity

at Secure Wealth Management, most of the ETFs we employ in our portfolios have market capitalisations in the USD billions, making them some of the most liquid investments available anywhere. We only use ETFs that have a market capitalisation of at least USD 100 million, and daily US dollar liquidity of at least 20 million.

Cost

we actively monitor the costs of all the ETFs in our investment universe (numbering over 600 ETFs currently). All else being equal, we will always choose the lowest-cost ETF, considering the TER (Total Expense Ratio) and bid-offer spread.

See our Portfolios

iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its affiliates ("BlackRock") and are used under license. BlackRock is not affiliated with Secure Wealth Management Ltd, New Zealand, succursale Chavannes-de-Bogis. BlackRock makes no representations or warranties regarding the advisability of investing in any product, model portfolio or service offered by Secure Wealth Management Ltd, New Zealand, succursale Chavannes-de-Bogis or any of its affiliates. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product, model portfolio or service offered by Secure Wealth Management Ltd, New Zealand, succursale Chavannes-de-Bogis or any of its affiliates nor does BlackRock have any obligation or liability to any client or customer of Secure Wealth Management Ltd, New Zealand, succursale Chavannes-de-Bogis.