HOW DO YOU PLUS A PORTFOLIO STRATEGY WITHOUT CHANGING IT?
INTRODUCING PORTFOLIO + ETFs. YOUR ASSET ALLOCATION STRATEGY. PLUS A LITTLE MORE. Portfolio + ETFs are a suite of exchange traded funds that add 25% more daily exposure to popular broad-based indexes. By applying a modest amount of leverage (1.25X), these ETFs allow investors to obtain $1.25 worth of daily exposure to their benchmark index for every $1.00 invested, with little change to a portfolio s risk profile. Advisors can apply these lightly leveraged products to their existing asset allocation strategies to seek greater upside potential over time. PORTFOLIO + ETFs COULD ALLOW YOU TO: Target increased daily exposure to common broad-based indexes. Maintain allocations to the asset classes of the indexes within your strategy; and Provide magnified returns in order to seek outperformance over time. Portfolio + ETFs deliver access to manageable levels of added exposure to magnify returns, in a cost-effective, transparent, liquid structure; in order to help portfolios work harder. PORTFOLIO + ETFs LINEUP. Portfolio + S&P 500 ETF (PPLC) Portfolio + S&P MidCap ETF (PPMC) Portfolio + S&P SmallCap ETF (PPSC) Portfolio + Developed Markets ETF (PPDM) Portfolio + Emerging Markets ETF (PPEM) Portfolio + Total Bond Market ETF (PPTB) MAGNIFIED RETURNS MAY BE POSITIVE OR NEGATIVE. Unlike traditional short-term trading products which provide 2x-3x levels of exposure, the Portfolio+ ETFs created with the long term investor in mind. Investing in a Portfolio+ ETF may be more volatile than investing in broadly diversified funds. The volatility of an index may affect a Portfolio+ ETF s return as much as, or more than, the return of the index. As a result, the Portfolio+ ETFs may not behave as expected. The Portfolio+ ETFs are intended to be used by investors who intend to monitor their portfolios.
COMPETITION GROWS AS MARGINS SHRINK. As an advisor, you work hard every day to set yourself apart from your peers in a way that helps build your business. But over the last decade, increased correlation among asset classes, the inability to outperform passive index investing, and downward pressure on fees even as overhead costs rise; all put pressure on you to add cost-effective value for your clients, while defending your margin. DIVERSIFICATION IS KEY: Mid-Cap Equities Small Cap equities will have higher risk and higher return potential Blue Chip (Large-Cap) Equities Investment-Grade Corporate Bonds RETURN % Money Market Or Government Treasuries will have lower risk and lower returns RISK % (STANDARD DEVIATION) For your clients, the main goal is to grow their assets while taking on an acceptable level of risk. For decades, diversification has been the tried and true method for reaching your clients objectives. It s no wonder, since effective asset allocation is the most fundamental investing principle because it helps investors seek maximum risk-adjusted returns, over the long run. Portfolio diversification through broad asset allocation allows investors the opportunity to seek to maximize risk-adjusted returns over full market cycles. How well you manage your clients assets against their individual risk profile over time, in the end may be your best weapon in setting yourself apart from other advisors. Traditional diversified asset allocation models have served investors well for decades. What if there was a way to add just a little more exposure to those diversified portfolios over time? Now there is. In general, advisors have relied upon actively and passively managed mutual funds and ETFs, to build different asset allocation models; we believe the Portfolio + ETFs can offer advantages over traditional investments for advisors seeking to outperform the market: Actively managed funds offer access to the upside potential of the portfolio manager s best ideas, but typically involve higher fees, which can hurt long term returns. Passive, traditional index tracking funds offer low-cost, broad market exposure, but by definition have no potential to outperform their benchmarks. The ETF structure offers daily liquidity and transparency compared to mutual funds, which trade at NAV and typically release holdings on a quarterly basis.
A LITTLE CAN GO A LONG WAY. For decades sophisticated institutional investors have been managing portfolios with the use of derivatives to increase exposure to certain asset classes. Over time, just a small amount of increased exposure might make a difference. Portfolio + ETFs are structured in a way to apply this institutionalstyle strategy, in a simple, cost-effective manner. Consider the Portfolio + ETF lineup of funds to help your clients portfolios work harder for them. ANNUALIZED RETURN CUMULATIVE RETURN 12.52% 13.33% 42.15% 49.78% ANNUALIZED VOLATILITY 12.29% 16.29% RISK/RETURN 1.02 0.82 MAX DRAWDOWN -12.96% -16.44% The above numbers show the non-leveraged returns of the S&P 500 Index compared to the returns of the on a daily basis for the period of 1/07/2015 through 12/31/2017. This example shows what an investor might have experienced if they invested in the ETF. PERFORMANCE (As of 3/31/3018) 1M % 3M % YTD % 1Y % 3Y % PPLC Portfolio+ S&P 500 ETF NAV -3.19-1.31-1.31 17.03 12.75 13.32 Market Close -4.69-1.25-1.25 19.70 12.69 13.41 S/I OF THE FUND % SPXT -2.54-0.76-0.76 13.99 10.79 10.85 INCEPTION DATE EXPENSE RATIO GROSS/ NET* 01/07/2015 0.86/0.37% The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns for performance under one year are cumulative, not annualized. For the most recent month-end performance please visit the funds website at www.portfolioplusetfs.com. Shares of the Portfolio+ ETFs are bought and sold at market price (not NAV) and are not individually redeemed from a Fund. Brokerage commissions will reduce returns. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 pm EST (when NAV is normally calculated) and do not represent the returns you would receive if you traded shares at other times. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense reimbursements or recoupments and fee waivers in effect during certain periods shown. Absent these reimbursements or recoupments and fee waivers, results would have been less favorable.
YOUR IDEAS. PLUS. For long-term investors, portfolio diversification is key. Historically, a portfolio constructed of diversified investments provides for better risk adjusted returns and less volatility than any single investment found within the portfolio. Portfolio + ETFs provide a manageable level of additional daily exposure just 25% to broad-market indexes through the use of leverage. Funds that employ leverage tend to thrive most consistently in low volatility environments. If you re successful creating strategies that combat volatility, then Portfolio + ETFs may be just the right addition. Whether you decide to invest in the funds in one or two asset classes or more holistically, the pairing of your best ideas, plus the added strength of Portfolio + ETFs, may be a great way to set yourself apart. Investing in a Portfolio + ETF may be more volatile than investing in broadly diversified funds. The volatility of an index may affect a Portfolio + ETF s return as much as, or more than, the return of the index. As a result, the Portfolio + ETFs may not behave as expected. The Portfolio + ETFs are intended to be used by investors who intend to monitor their portfolios.
FOR INFORMATION: 833-547-4417 INFO@PORTFOLIOPLUSETFS.COM PORTFOLIOPLUSETFS.COM An investor should carefully consider a Fund s investment objective, risks, charges, and expenses before investing. A Fund s prospectus and summary prospectus contain this and other information about the Portfolio + ETFs. To obtain a Fund s prospectus and summary prospectus call 833-547-4417 or visit our website at www.portfolioplusetfs.com. A Fund s prospectus and summary prospectus should be read carefully before investing. The Portfolio + ETFs seek returns that are 125% the return of its benchmark index for a single day. The funds should not be expected to provide 1.25 times the return of the benchmark s cumulative return for periods greater than a day. Investing in a Portfolio + ETF may be more volatile than investing in broadly diversified funds. The volatility of an index may affect a Portfolio+ ETF s return as much as, or more than, the return of the index. As a result, the Portfolio + ETFs may not behave as expected. The Portfolio + ETFs are intended to be used by investors who intend to monitor their portfolios. Risks An investment in the ETFs involve risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from the ETFs investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. For other risks including leverage, correlation, daily compounding, market volatility and specific risks regarding each sector, please read the prospectus. 4 03/31/2018 Distributor for Portfolio + ETFs: Foreside Fund Services, LLC.