Why we use ETFs in portfolio construction
Exchange-traded funds (ETFs) have been an integral part of our portfolio construction methodology for over two decades, alongside individual security selection. ETFs provide portfolio managers and investors exposure to defined indexes for a very reasonable fee – especially compared to traditional mutual funds – and provide superior tax efficiency to their mutual fund brethren when held in taxable accounts. Our objective is to deliver attractive risk-adjusted returns net of fees and net of taxes, and ETFs are a fine tool to achieve those results. A primer on ETFs:
