Investment Portfolio Solutions
Flat Fee Portfolios offers several different styles of portfolio management: passive portfolios featuring ETFs and Dimensional funds, active portfolios featuring “best of breed” investment managers and tactical strategies. Our more traditional passive and active models have a variety of allocations available which span from conservative to more aggressive portfolios. We also have tax-sensitive versions of these portfolios available.
In addition, Flat Fee Portfolios also offers an Alternative Investment Portfolio. This strategy may be right for you if you seek the broadest level of diversification by adding non-correlated, non-traditional asset classes and investment strategies.
The Flat Fee Portfolios Active Strategy offers models containing actively managed mutual funds. Flat Fee Portfolios performs due diligence and screens money managers based on style, performance, and risk. A fund's fees are considered, with a focus on no-load funds and a goal of minimizing transaction fees and 12b-1 fees.
Flat Fee Portfolios looks for managers with long tenure and low turnover to limit internal trading costs. We also review managers for style consistency.
A benefit of an active management strategy is that even in a flat market the funds can provide a positive rate of return if the managers make good choices. The risk of an active management strategy is human error, where a manager might make decisions that result in material underperformance.
The Flat Fee Portfolios Passive Strategy is an approach for investors who believe that the market is efficient. These model portfolios use low cost Exchange Traded Funds (ETFs) that are designed to replicate the performance of a given market index. It also utilizes passive strategies from Dimensional Funds.
Some benefits of ETFs and Dimensional Funds are:
- Low costs
- Minimal tracking error relative to a portfolio’s benchmark