Behavioral Goals-based ETF model Portfolios
Our behavioral goals-based ETF model portfolios prioritize achieving specific investor objectives over merely maximizing returns or minimizing risk. With this approach, we view our client’s investment risk as failure to meet their goals, rather than the volatility of returns.
By focusing on what truly matters to our clients—whether it’s funding education or retirement—we can better align investment strategies with individual aspirations. Understanding a client’s goals and tolerance for risk enables us to guide them towards smarter, more meaningful investment choices, ultimately leading to greater satisfaction and success in reaching their financial milestones.
ETFs offer our clients the ease of stock trading, low-cost, tax-efficiency, and the diversification benefits of mutual funds.
CRG’s goals-based ETF model portfolios are built using a mix of third-party passive equity; active fixed-income; and managed alternatives from select asset managers including Blackrock; Vanguard; JP Morgan; Invesco; and PIMCO.
Our main objective is to provide our clients with low cost, tax efficient, and broadly diversified 3–dimensional market exposure to EQUITY, FIXED-INCOME, and ALTERNATIVE markets, to help them achieve their life goals.
CRG’s 3D-ETF Model Portfolios are built using a mix of equity, fixed income, and alternatives and offer 4 goals-based allocation buckets – Conservative, Moderate, Growth, and Aggressive.
The series is designed cost-efficiently using ETFs to address our clients’ varied investment objectives, time horizon, and risk tolerances, while mitigating drawdown risk for each goals-based allocation bucket.
Key Facts:
- Multi-Asset, diversified, open architecture, global asset allocation
- Strategic Asset Allocation framework focused on client goals & time horizon
- Cost efficient through the use of exchange traded funds (ETFs) as the underlying investment vehicle
Rebalancing Frequency:
- Quarterly or as needed
Step 1: Define Investor Goals
Identify financial goals with associated time horizons and funding needs.
Step 2: Behavioral Risk Profiling
Assess the investor’s emotional tolerance for risk in the context of each goal.
Step 3: Asset Allocation Design
Develop tailored ETF allocations per goal bucket, balancing growth potential and capital preservation.
Step 4: Implementation and Monitoring
Use low-cost ETFs to build portfolios, with regular rebalancing and progress reporting.
DUE DILIGENCE
Our team meticulously reviews hundreds of ETF funds from a short-list of reputable and experienced asset managers, including: Vanguard; Blackrock; JP Morgan; Invesco; and PIMCO.
Our process is methodical and structured to ensure suitability and optimal outcomes.
- First, we analyze the composition of each fund to understand it’s unique holdings.
- We prioritize diversification to mitigate risk and consider liquidity and holding costs to maximize long-term returns.
- By taking this detail-oriented approach, we construct robust and cost-effective risk-based ETF model portfolios that effectively match our clients’ financial goals & objectives, risk capacity & tolerance, and time horizon.
MONITORING & REBALANCING
We continually monitor and rebalance our ETF model portfolios to ensure that your investments align with your financial goals, risk tolerance, and market expectations. Rebalancing plays a crucial role in our investment management process, ensuring that our client portfolios stay within the intended allocation and risk profile over time.
Our quarterly ETF model rebalancing involves adjusting model holdings to maintain the desired asset allocation and investment strategy.
Having a carefully crafted plan for rebalancing, considering tax implications, and taking the overall portfolio into account helps to maintain well diversified model portfolios and avoid common mistakes associated with ETF rebalancing.
Key Steps Include:
- Establishing Clear Objectives
- Regular Performance Reviews
- Analyze Asset Allocation
- Monitor ETF Fund Characteristics
- Stay Informed on Market Conditions
- Consider Tax Implications
By following these steps, we effectively monitor your ETF model portfolio and make informed decisions to achieve your investment objectives, while adhering to your risk tolerance.
A FOCUS ON YOUR LIFE GOALS
With goals-based investing, the focus shifts from abstract objectives such as maximizing portfolio returns to more specific life goals that truly matter to you – we start with the “why” behind your investments to:
- Align your investments with your life goals
- Measure progress towards specific milestones
- Receive personalized guidance from our wealth experts
- Enjoy the peace of mind that comes with a clear plan
BRINGING THE FUTURE INTO THE PRESENT
From retirement planning, investment strategies, tax optimization, to estate planning, we offer personalized solutions tailored to your unique circumstances.
Address
2325 E. Camelback Rd., Ste 400, Phoenix AZ 85016
Phone
(480) 364-7401
We specialize in personalized retirement solutions for small & mid-sized businesses, the self-employed, and individual investors in healthcare.
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LEGAL DISCLOSURE
Cognis Group is a State registered investment adviser, pursuant to the Investment Advisers Act of 1940, as amended, with principal offices in Phoenix AZ. Cognis Group and its representatives are in compliance with the current filing requirements placed upon registered investment advisers by those states in which it maintains clients. A copy of our current written disclosure statement (Form ADV-Part 2) discussing business operations, services and fees is available upon request or may be downloaded here.
This website does not constitute an offer to provide investment advisory services in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction. The information contained on this site is for informational purposes only and should not be construed as financial, investment, legal, tax, or other advice. By accessing this website, you agree to be bound by the above terms and conditions.
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