Borthwick Associates is pleased to announce our new Exchange Traded Fund (ETF) product for 2008.
What are ETFs?
Exchange Traded Funds (ETFs) are baskets of securities designed to generally track a broad stock market index (i.e. large cap growth, small cap value), stock market sector (i.e. energy, technology) or region of the world (i.e. China, Europe, Mexico). ETFs have exploded in popularity since they were first introduced by the American Stock Exchange in the early 1990’s. Reasons for their wide acceptance include all-day trading flexibility, tax efficiency, low cost structure and diversification properties. Visit www.amex.com for more complete investor information on this exciting new asset class including risks and expenses.
How will my ETF account be managed?
Borthwick Associates will select a portfolio of five to seven ETFs that will be adjusted quarterly for changing market dynamics. This all-equity portfolio will take advantage of our firm’s 25+ years experience in identifying and selecting various themes and sectors that we believe have the greatest potential to outperform the general market. Recent history suggests that being in the right sectors, while avoiding the wrong ones, can contribute greatly to portfolio success.
Who is this product for?
Due to the inherent diversification properties of ETFs, this product can be ideal for investors with smaller amounts of capital. Borthwick’s ETF product is suited to investors with $50,000 or more in investable assets. For those investors looking to reduce the amount of paperwork they are receiving from various custodians or previous employers, this product is also a great way to consolidate multiple smaller IRA's and Rollovers into one account. We understand the frustration many investors encounter when selecting and combining mutual funds that often overlap and don’t meet their objectives. By utilizing Borthwick Associates, investors can take comfort in knowing that their assets are being professionally managed as one cohesive and easy to understand portfolio. Please note that this product does require the investor to open a no-fee IRA at Fidelity Investments.
What is the Management Fee for this product?
Borthwick Associates management fee on our Exchange Traded Fund product is 1.25% of the assets under management, paid quarterly in advance. Investors may cancel this contract at any time and receive a refund of any unearned fees.
Investors are cautioned that all Exchange Traded Funds have imbedded management fees. These fees typically range from .10% to .90% and can be found on the issuer's website. Additional trading costs of $17.95 per trade will be incurred by investors on each buy or sell made for your account. Borthwick Associates does not share in fees charged by either the ETF or Fidelity Investments. Total fees and expenses are anticipated to be approximately 2% of the value of your account per annum after the first year on all tax-deferred accounts over $120,000.
