The Target 8 portfolios form the core of Toroso Investments’ ETP strategy. Our models are based on an easy to understand multi-asset class principle that targets five different economic scenarios – neutral, prosperity, recession, inflation and deflation. Toroso then carefully constructs a portfolio of ETPs for each model with geometrically weighted exposures to four uncorrelated asset classes to best support that view. Toroso Investments’ ETP strategy can limit the downside risk of a client’s portfolio in an adverse economy.
Exchange traded products have allowed many investors access to bonds, which have traditionally been unavailable to them. Our Target Income Series uses ETPs to create fixed income portfolios intended to behave more like traditional bonds. The goal of the portfolio is to target a specific yield while returning principal at a target date. While it is impossible to guarantee the receipt of income or the return of principal, the proliferation of ETPs has created the opportunity to build synthetic bonds that simulate traditional bond characteristics, but reduce risk through greater diversification.