We Follow an “Investing, not Trading” Philosophy
OnlyFunds adheres to a long-term, “buy-and-hold” investment philosophy. While we reserve the right to act otherwise if it feels that it is in the best interests of our clients, we don’t try to time the market (making buying or selling decisions by attempting to predict future market price movements).
In general, we don’t react to market movements on purpose.
This is because numerous academic and industry studies show that attempting to do this, or to pick specific winners, leads to a changing and malleable investment thesis, hampering wealth-creation in the long term.
Because we strongly believe in the semi-strong form of the Efficient Markets Hypothesis, OnlyFunds provides the service of investment management through portfolio construction, and not a service that will pick winning short-term trades.
We Utilize Modern Portfolio Theory (MPT)
Here at OnlyFunds, we’ll provide you with investment advice based on MPT. In other words, we will try to maximize your portfolio’s expected return for a given amount of portfolio risk, or equivalently minimize risk for a given level of expected return. We will do this by selecting the proportions of various asset classes rather than selecting individual securities.
For many years, this kind of financial advice was only available through high-end financial advisors. Not any more. At OnlyFunds, we enable influencers and creators to access the premier benefits of MPT.
We are able to do this thanks to recent innovations in software-based investment advisory services. Before this technology was perfected, it wasn’t practical to offer rigorous and complete MPT to most people, and so not many did.
Employing MPT properly requires an accurate determination of an individual’s objective and subjective tolerance for risk, which in turn requires sophisticated software applied to more detailed questions than are typically asked by advisers.
Based on this risk analysis, OnlyFunds seeks to create an individualized investment plan using the optimal asset classes in which to invest, the most efficient and inexpensive ETFs to represent each of those asset classes, and the ideal mix of asset classes based on the Client’s specific risk tolerance.
We periodically review the entire population of more than 1,000 ETFs to identify the most appropriate ETFs to represent each asset class and utilizes model portfolios including these ETFs to deliver the best solutions tailored to Clients’ needs. We look for ETFs that minimize cost and tracking error and offer market liquidity. OnlyFunds continuously monitors our Clients’ portfolios and periodically rebalances them back to the Clients’ target mix in an effort to optimize returns for the intended level of risk