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Astor constructs portfolios exclusively using exchange-traded funds (ETFs), emphasizing the use of low-cost investment products. An ETF is a collection of securities that tracks, or is intended to represent, the performance of either a broad or specific segment of the market. ETFs trade in highly liquid markets and are a pure play on a specific index or sector. The transparency and low expenses of these funds make them the ideal investment choice for Astor's macroeconomic approach.
The vast range of the investable universe covered by the ETF marketplace includes multiple asset classes, sectors and investment styles not limited to broad indexes such as the S&P 500, NASDAQ Composite and DJIA. This exposure can provide a portfolio with true diversification spread over various asset classes.
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ETFs typically have lower management fees and expense ratios than actively managed funds. Most ETFs are designed to track a benchmark, which can mean fewer trades and lower portfolio turnover. |
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Since ETFs are passively managed, they commonly realize fewer capital gains than actively managed funds which reduces the frequency of tax gain distributions. |
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Investors have all the required information they need to make informed investments using ETFs. Investors have access to all securities held within an ETF on a daily basis. |
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ETFs trade throughout the day so investors can lock in the market value of an ETF at any time during the trading day and can enter or exit a position at any time. |
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ETFs provide exposure to asset classes which, until recently, were not readily available to the average investor. |
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ETFs are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. For more detailed information, please refer to Astor's Form ADV, Part 2.
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