An ALPS Advisors, Inc. Solution

 

Studies show* that roughly 90% of investor returns are a direct result of asset allocation decisions. With that in mind, ETFs offer a way to deliver precise exposure to desired asset classes. When compared to using actively managed mutual funds, here are some of the benefits of using ETFs to build asset allocation models:

  • Pure asset class exposure
  • Lower internal expenses
  • Efficient rebalancing
  • No risk of portfolio manager turnover
  • Minimal risk of overlap in holdings
  • No style drift

*SOURCE: ETF 101 published by Ibbotson Associates 2008

The studies are not specific to the FIVIT funds and reference a generic example of ETF Allocation.

Mutual funds using ETFs as their underlying investments might be especially appealing to investors who:

  • Seek a low-cost asset allocation solution
  • Desire a portfolio tailored to their own risk tolerance and investment time horizon
  • Want broad diversification through a single portfolio

The Ibbotson ETF Allocation Series Portfolios are not Exchange Traded Funds (ETFs), instead they consist of five risk-based asset allocation portfolios that invest in underlying ETFs, which are typically open-end investment companies or unit investment trusts.

Asset allocation cannot assure a profit nor protect against a loss.

An investor should consider the investment objectives, risks, charges and expenses of the Fund (or of the Investment Company) carefully before investing. To obtain a prospectus containing this and other information, please call 1-866-432-2926. Read the prospectus carefully before you invest.

Investing involves risk including loss of principle. Additional information regarding the risks of this investment is available by clicking the disclosure link at the top of the page.

Shares of the Portfolios are offered only to participating insurance companies and their separate accounts to fund the benefits of Variable Contracts, and to qualified pension and retirement plans and registered and unregistered separate accounts.

ALPS Distributors, Inc. is the distributor for the Ibbotson Portfolios. ALPS Advisors, Inc. is the investment adviser to the Portfolio and Ibbotson Associates, Inc. is the investment sub-adviser to the Portfolio. ALPS and Ibbotson Associates are unaffiliated entities.

© 2007-2012 Ibbotson Associates. All rights reserved. Ibbotson Associates is a registered investment advisor and a wholly owned subsidiary of Morningstar, Inc. Ibbotson and the Ibbotson logo are either trademarks or service marks of Ibbotson Associates.