As an online investment marketplace, our mission at IBKR Asset Management is to provide a comprehensive array of portfolio choices at the lowest possible cost to help investors meet their financial goals.
That’s why we have recently introduced the State Street Tactical Allocation ETF Portfolio: Growth implemented by IBKR Asset Management based on model ETF portfolio data obtained from State Street Global Advisors pursuant to a licensing agreement.
The model portfolio allocations are managed actively and rely on State Street Global Advisors’ tactical asset allocation decision-making process that includes the evaluation of global asset classes.
The investment views underlying each portfolio are informed by State Street Global Advisors’ quantitative approach and refined by the fundamental views of their Investment Solutions Group (ISG), a 90+ member investment team.
The State Street Tactical Allocation ETF Portfolio: Growth seeks to capitalize on short-and long-term mispricing in the global equity and fixed income markets by overweighting asset classes which appear attractive and underweighting asset classes which the team expects to underperform.
This portfolio trades monthly or more frequently (approximately 12-18 times a year).
At IBKR Asset Management, we offer an array of active, passive and self-directed portfolio strategies suited to your individual investment needs.
We think we offer an attractive value proposition to the discerning investor.
Low Fees: Our management fee of 0.30%, or 30 basis points for this portfolio, is among one of the lowest in the industry for a similar portfolio.
Please note that commissions for trades in this portfolio charged by our affiliated broker-dealer Interactive Brokers LLC are separate and in addition to our 0.30% management fee.
Transparency: You can check out positions and trades online at your convenience.
Easy: You can buy and sell your investments in this portfolio online or by phone.
Rebalance: This portfolio is rebalanced periodically (12 to 18 times per year).
Disclosure: There is not guarantee or assurance that the quantitative models used to create the State Street Tactical Allocation ETF Portfolios will be successful at enhancing returns or managing the risk of the portfolios or that the models will behave as expected in all market conditions.
Most of the ETFs in these portfolios make payments to State Street Global Advisors (SSGA) for advisory or other services and thus SSGA has an incentive to include SSGAETFs in the model portfolios. There may be similar ETFs with higher ratings, lower fees and expenses, better performance or more attractive yield/risk profiles in the market. Income earned by SSGA would be lower and returns generated by these portfolios might be higher if the model portfolios were constructed using ETFs or other investments that do not pay fees to SSGA or its affiliates. SSGA and its affiliates will thus benefit from investments made by IBKRAM and its clients in these portfolios through fees paid by the SSGA ETFs to SSGA and its affiliates for advisory and other services.
For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third largest asset manager with US $2.72 trillion* under our care.
While State Street licenses model portfolio data enabling IBKR Asset Management to build and periodically rebalance these portfolios, State Street does not have trading discretion, and it is not an adviser or fiduciary to IBKR Asset Management clients investing in these portfolios.
*AUM reflects approximately $32.9 billion (as of June 30, 2018), with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.