On a recent visit home, I did as any grateful son would do: In addition to sharing time and catching up with my mom, I also gladly agreed to review recent account statements from her advisor. As we sat at the kitchen table, I noted that she’d done quite well given the relatively conservative build of the portfolio. In the last three years, she’d earned a compound return north of 10% per year, and the portfolio’s value had been remarkably stable given limited market volatility during the period.1
Mom asked me if she should expect the same looking forward. I responded that this was, unfortunately, unlikely, and explained what I see as today’s investment realities. This led to a deeper discussion about what she should do going forward, and how I manage my own family’s finances. Of course, I told her I eat our own cooking.
When I mentioned that I invest in our own multifactor ETFs, however, the blank stare that ensued told me that the concept of multifactor investing wasn’t resonating with mom. She asked me to elaborate.
1 This example is provided for informational purposes only and is one investor’s results. It is not indicative of any other investor’s experience in the past or the future. Past performance is no guarantee of future results.
Important Risks: Investing involves risk, including the possible loss of principal.
ETFWP013 212141 HFA000513