The Crucial Art That’s Lost With Portfolios On Auto Pilot

August 02, 2016

In Exhibit 3, we break down the market caps, styles and sectors. Of particular note is the tilt toward midcap stocks within DVY, and the overweight in sensitive stocks in SCHD.

Exhibit 3

Market-Cap Breakdown

Style Breakdown

Sector Weightings

Source: Bloomberg

Putting It All Together

Despite the recent wave of oversimplified computer investing solutions and generic portfolios, many designed to break investments down to 100% science, we feel there is inherent value in the artistic aspect of investing—a value that can be provided most consistently through a team-driven process.

The idea of a building that is built 100% by robots seems unappealing to us, especially if there is not a skilled team of architects there to consistently monitor the robots and adjust them if needed. Likewise, the recent wave of issues with self-driving cars and Pokémon games would lead us to believe humans should pay attention.

 

DVY, SCHD and VIG have been, may be and/or are currently held in several TOPS Portfolios. ValMark Advisers Inc. is a federally registered investment advisorf located in Akron, Ohio. ValMark and its representatives are in compliance with the current registration and notice filing requirements imposed upon federally covered investment advisers by those states in which ValMark maintains clients. For registration or additional information about ValMark, including its services and fees, a copy of our Form ADV is available upon request by contacting ValMark at 1-800-765-5201. For a complete list of relevant disclosures, please click here.

 

 

Find your next ETF

Reset All