Using ETFs to cut the cost of core-satellite investing

For years, investors relied on equities and/or bonds to provide most of their desired investment returns. However, as the investment universe has widened, advisers have been able to take advantage of a broader set of opportunities and build more dynamic portfolios with diversified sources of return. An increasingly popular way of doing this is through core-satellite portfolio construction, which is based on the concept of splitting a portfolio into two segments: the ‘core’ forms the foundation of the strategy around which the more specialised ‘satellite’ investments are added. Exchange-t...