ETFs, passive investing and our own robo-advisor are the bedrock of Link’s financial wellness solutions
The coronavirus pandemic. The contentious 2020 U.S. election.
In a sea of uncertainty, investment experts are touting the stabilizing influence of Exchange Traded Funds (ETFs).
“With the uncertainty of the election cycle and potential post-election jitters, advisors may need help to guide their clients now more than ever. Elite advisors are using (a target outcome ETF) strategy to differentiate themselves and gather assets during today’s environment,” reads a recent article in Investment Executive.
Low-cost, passive, index-tracking ETFs are a cornerstone of Link Investment Management’s workplace financial wellness plans. As a result, our workforce savings solutions, including our own LINK Multi Employer Pension Plan, can improve retirement outcomes for employees.
Being rules-based and transparent, ETFs resist the spectre of style drift and can better withstand cyclical exposure.
“ETFs are central to Link’s identity as a disruptive innovator in the workplace financial wellness space,” notes Brian McClennon, President and Chief Executive Officer of Link Investment Management. “They have a lower price point, long-term advantages because of strategic exposure, and significantly lower management fees.”
Using ETFs, Link’s experienced portfolio management team uses a passive investing model—not trying to beat the market, but rather match the market with a low-cost strategy of buy, hold and rebalance.”
The combination of ETFs, passive investing and Link’s own proprietary robo-advisor algorithm can pay big dividends for small to midsize employers, as well as their employees:
- Tailor-made investment portfolios that reflect an employee’s retirement objectives, risk tolerance and timeline
- Ease of administration for employers
- Regular, automated rebalancing based on a member’s assigned asset allocation
- A lower and completely transparent fee schedule
“Even in uncertain times—and I would say especially in uncertain times—a passive investing model using ETFs means staying the course, avoiding emotional decisions based on the ‘flavor of the week,’ and ultimately better long-term outcomes,” says Mr. McClennon.