High Yield ETF model

Alpha Portfolios Model ETF Managed Investment Portfolios

The High Yield ETF model portfolio

Strategy provides a best of breed diversified High Yield portfolio.

High Yield sector rotation ETF Model Investment Portfolio

High Yield sector rotation ETF Model Investment Portfolio

The results of this model portfolio are based on a backtest, which is a representations of a portfolio and which does not include any kind of fees, including but not limited to brokerage, management or other fees. The backtest results are hypothetical and actual results will vary. Performance of this model portfolio may differ substantially from the results of the backtest depicted here. Please see Portfolio and Backtest disclosures about this model portfolio.

Investment Philosophy

  • High Yield strategy provides exposure to income producing higher yielding securities which is an important aspect of an income producing investment portfolio
  • High Yield strategy improves regular income from a fixed income (bond) only portfolios
  • Higher yielding securities are an important part of an overall strategic asset allocation and portfolio diversification
  • Higher yielding securities may provide lower volatility and lower risk relative to major stock indices

Investment Process

Strategy utilizes a diversified investment approach to various high yielding securities. Strategy allocates various exposures to different high yielding securities across both bonds and equities, with various durations and credit ratings, including investment grade and high yield. Strategy invests in domestic, international and emerging markets. Strategy picks lower cost liquid ETFs. Strategy is always invested in the market.

Performance

High Yield sector rotation ETF Model Investment Portfolio

"S&P 500" - The Standard & Poor's 500, is a stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ
"AGG" - iShares Core Total US Bond Market ETF (AGG-NYSEArca) actual results
"SPY" - SPDR S&P 500 (SPY-NYSEArca) actual results
Sources: Rockledge, Compustat, Yahoo
Backtested performance

Benefits of the Portfolio

  • Designed to outperform the high yield benchmark in up and down markets
  • Aim to provide higher risk adjusted returns relative to high yield benchmark
  • Liquid holdings
  • Diversified holdings minimize individual asset and/or security specific risk

Who Should Invest

  • Investors who are seeking to receive income from their portfolios
  • Investors who are seeking above average income that is achieved with fixed income only portfolios
  • Investors who are comfortable with medium investment risk
  • Investors seeking to diversify their portfolios

Portfolio Allocation - High Yield strategy

October 2014

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Ticker Name Weight
AMLP ALPS Alerian MLP ETF 9%
BKLN PowerShares Senior Loan Port 6%
CWB SPDR Barclays Capital Convertible Secs 6%
DVY iShares Select Dividend 9%
HYLD AdvisorShares Peritus High Yield ETF 6%
HYT BlackRock Corporate High Yield Fund VI 6%
NEA Nuveen AMT-Free Municipal Incom 6%
PFF iShares US Preferred Stock 9%
SDY SPDR S&P Dividend ETF 9%
SPG Simon Property Group Inc. 8%
TIP iShares TIPS Bond 6%
VNQ Vanguard REIT Index ETF 8%
VWITX Vanguard Interm-Term Tx-Ex Inv 6%
XLU Utilities Select Sector SPDRÂ 8%

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