How does GuidedChoice ensure portfolios aren’t over weighted with specific class assets?
We model the risk and return of asset classes, not industries or sectors. By targeting broad asset class weights in our clients’ portfolios, in effect we are targeting market weighting within each asset class. Within that market weighting, individual fund managers might favor certain industries and sectors and underweight others. Any advisor who explicitly targets specific industries and sectors, such as Energy, Healthcare, Technology, REITs, etc, does this differently; their clients might or might not turn out to be better off. Learn more about our advisor services here.
Our mission is to help people retire securely. Given how fraught with uncertainty modeling future returns is in the first place, we don’t think betting on individual industries or sectors is a risk worth taking with our clients’ future.