Knowledge Tree
Relations (1)
related 2.00 — strongly supporting 2 facts
ETFs are the primary investment vehicles used to represent and implement exposure to various asset classes, as evidenced by their use in diversified portfolios [1] and asset allocation funds [2]. Furthermore, the evaluation of asset classes for investment strategies explicitly considers the implementation costs associated with ETFs [3].
Facts (2)
Sources
Wealthfront Classic Portfolio Investment Methodology White Paper research.wealthfront.com 2 facts
procedureWealthfront evaluates asset classes based on long-term historical behavior, risk-return relationships, expected behavior based on secular trends and the macroeconomic environment, correlation with other asset classes, resistance to inflation, ETF implementation costs (expense ratios), and tax efficiency.
claimWealthfront recommended portfolios utilize a diversified set of global asset classes, each represented by a low-cost, passive exchange traded fund (ETF).