VistaShares
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VistaShares delivers innovative Liquid Alternative investment solutions for today's investors. VistaShares ETFs are actively managed by industry and investment experts, offering a number of distinct strategies. Supercycle® Growth Equity ETFs seek exposure to technology-driven economic Supercycles® that the adviser believes may offer long-term growth potential. Target 15® option-income ETFs seek to generate monthly income while complementing a core equity portfolio. Income is not guaranteed and will vary, and the Target 15® name refers to the strategy's objective rather than a guaranteed or promised return. Investing involves risk, including possible loss of principal. There is no guarantee that any investment objective will be achieved, and past performance does not guarantee future results.
What you will meet in these notes
- Look-through
- reading what a fund actually holds rather than what its category says, so overlap with a portfolio can be measured instead of assumed.
- Effective exposure
- the exposure a decision genuinely adds once what is already held is taken out of it, which is usually smaller than the position size suggests.
- Contribution
- how much of a period return came from which holdings, up and down, which answers a different question from weight.
- Threshold rebalance
- trading when a weight drifts past a band rather than on a date, which trades more in volatile years and less in quiet ones.
- Sequence risk
- the effect of the order in which returns arrive on a portfolio that is being drawn on, which two identical holdings lists can experience very differently.
What we write about here
Mail from this address is about rebalancing, which is the part of a plan most often written down and least often followed. A rule that says to trim what has run and add to what has lagged is easy to agree with in a document and hard to carry out in the quarter it applies to, because by then the thing that has run is the thing everyone can explain.
The mechanics matter as much as the rule. Calendar rebalancing and threshold rebalancing produce different books over a decade, threshold trades more in volatile years and less in quiet ones, and neither is obviously right. What is clearly wrong is having no rule and deciding each time.
A rule chosen in advance is worth more than a better rule chosen in the moment.
The advantage is not that the rule is optimal, it is that it survives the quarter in which following it feels least sensible, which is the quarter it exists for.
The same is true of the exceptions. A rule with a written exception is still a rule; a rule with an exception invented on the day is a preference that was wearing a rule for a while.
About this domain
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If a message from vsharesconnect.com reached you and you want to confirm it came from us, write to info@vistashares.com or call (844) 875-2288.