LOW-COST EXCHANGE-TRADED FUND PORTFOLIOS
All GWP portfolios are made up of a mix of low-cost exchange-traded funds (ETFs). An ETF is a type of fund that owns groups of assets like stocks or bonds and is designed to provide portfolio returns in line with a particular index, such as the S&P 500. ETFs can provide you a diversified portfolio and are traded like stocks, making it easier to take advantage of market changes and potential tax-saving opportunities. Your GWP portfolio may contain up to nine ETFs—six equity and three fixed income—each in line with a different index target and invested in U.S. or foreign stocks and bonds.
An investment in exchange-traded products (ETPs) involves risks such as market, nondiversification, price volatility, liquidity, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking error.
Building the Portfolios
LPL Research, our partner and portfolio manager, created the allocations for GWP portfolios using the nine primary ETFs. The team behind this work includes 50 research professionals, each with an average of 10 years’ industry experience, who manage $22 billion of assets across several platforms and maintain more than 300 portfolios tailored to specific investment objectives. The GWP ETF allocations were constructed based on the team’s market outlook for the next 12 to 18 months and are periodically reviewed to determine if shifting is necessary to ensure the allocations remain well diversified.
ETFs Used in Guided Wealth Portfolios
IWF iShares Russell 1000 Growth
IWD iShares Russell 1000 Value
MDY SPDR S&P Midcap 400
SLY SPDR S&P 600 Small Cap
IEFA iShares Core MSCI EAFE
IEMG iShares Core MSCI Emerging Markets
Fixed Income ETFs
BND Vanguard Total Bond Index
VCIT Vanguard Intermediate-Term Corp Bond
JNK SPDR Barclays High Yield Bond