Core Strategy to Follow Key Market Indices
The Benchmark strategy seeks to closely follow performance of key market indices. It uses the MSCI ACWI Index, which covers approximately 85% of the world’s investable equity market (and is comprised of approximately 50% U.S. stocks), the S&P 500 Index for additional exposure to domestic markets and the Barclays U.S. Universal Index. It is comprised of Exchange Traded Funds (ETFs) with varying exposure to stocks and bonds, based on investment objective. Benchmark provides flexibility in building investment portfolios by acting as a core strategy to build upon or complement existing strategies.
- Exposure to a large number of securities in a single transaction
- Typically only makes portfolio changes when changes occur in the underlying index
- Covers U.S. and foreign markets, specific sectors, or a specific class of stock
An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors.