Advantages to Asset Class Investing

Key Factor determining portfolio return: Studies show that asset selection contributes 94% of an investment's return.
More efficient: Most efficient exposure to a wide variety of asset classes for investors without having to acquire all the underlying stocks/bonds.
Disciplined: With asset class investing, QSI takes the emotion out of being in the right place at the right time.
Consistency: QSI's portfolios are structured to "manage between the extremes" combining market research & investor behavior research.

Effective Diversification: ETF's and Index Funds

Broad diversification: Adapting a disciplined approach with ETF's and index funds, our core portfolio allocations allow an investor's participation in the market without the inherent risk of trying to predict the best stocks, time, or sector to be in to achieve a certain level of return.

Preventing Style Drift: Style drift can occur purposefully, when managers over or under weight specific sectors and/or stocks; or, it can occur accidentally, when a funds' allocation to a sector grows because of strong performance in that sector. Subsequently, the risk parameters associated with a portfolio can increase without any changes in the underlying investments. With ETF's and index funds, this specific risk is reduced due to the nature of these funds.

Lower Fees: Asset class investing using ETF's and index funds provides broad diversification with less cost. Studies show that 85% of active managers fail to outperform their benchmark yet these funds are typically associated with higher fees and potentially more risk.

Tax Efficient: ETF's and index funds offer a unique opportunity for investors to benefit from the vehicles' inherent tax efficiency while gaining exposure to a portfolio that is potentially more diversified. An ETF's structure makes them tax efficient as low turnover reduces any taxable events and the investment decisions of one investor does not affect another in the same portfolio as with the average fund.