New Library of “Investing Classics” Motifs Lets You Invest Like Ivy League Endowments, a “Boglehead”—and Set Target Dates for Retirement
San Mateo, CA, Feb. 12, 2013
Motif Investing, the company that pioneered ideas-based stock investing, announced a new library of what it calls “investing classics” motifs designed to shape the core holdings of investors’ portfolios. The motifs—collections of stocks, fixed income ETFs and other ETF strategies give Main Street investors access to classic, proven money-management strategies without hefty fees.
The inaugural set of “classic” motifs includes one that follows the investing strategy of some prominent Ivy League endowment managers, who favor significant exposure to real estate and inflation-protected securities in addition to U.S. and international stocks.
They also include a motif modeled on the type of indexing strategy made popular by Vanguard’s Jack Bogle and his devoted Internet following of “Bogleheads”; motifs geared toward investors planning for specific retirement dates; and another investing in ETFs that link non-correlated assets, like gold and bonds, to create a “permanent portfolio”, similar to the approach popularized by investor and author Harry Browne in the 1970s.
“Motif has always been focused on giving investors the tools to create intuitive and diverse investing strategies customized just for them,” said Hardeep Walia, Motif’s chief executive. “Our new lineup of classic investing motifs just adds to this toolkit and gives our customers even more options to build—and stay in control of—diversified, portfolios.”
The specific new motifs being announced include:
- “Ivy League“—Suited for investors interested in seeking a diversified approach that emphasizes ETFs and other securities related to real estate and inflation protection, in addition to stocks and bonds. The motif includes some U.S. securities outlined by Yale’s famed endowment manager David Swensen in his book, Unconventional Success: A Fundamental Approach to Personal Investment.
- “Index Fans“—Designed for Bogle followers who want to assemble an index of ETFs weighted approximately 10% to precious metals, 54to stocks and 36% to fixed income. This motif is intended to provide a tax-efficient, low-fee investing strategy that could generate steady returns over time.
- “Retiring 2020“—This motif and related ones offer target dates ranging from 2020 to 2055 for investors who desire a diverse portfolio across multiple asset classes, and want to adjust their asset allocation each year ahead of a set-date retirement. Investors nearing retirement, for example, will see their portfolio rebalanced to favor investments like short-term bond ETFs and ETFs containing U.S. Treasury Inflation-Protected Securities.
- “Permanent Strategy“—This motif pairs non-correlated assets in an attempt to offer stability during various economic cycles, such as those marked by growth, recession, inflation and deflation. This strategy was popularized by Harry Browne.
About Motif Investing
Motif Investing is an online broker that lets you invest in a world of big ideas. The company, based in Silicon Valley, is changing the face of online investing through an innovative new platform that allows individuals to invest in stock and bond portfolios based around everyday ideas and broad economic trends—and share those ideas with friends. Motif is a registered broker-dealer and a member of SIPC. The company’s investors include Foundation Capital, Ignition Partners and Norwest Venture Partners. Learn more at https://www.motifinvesting.com.
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Target Date motifs are subject to market volatility and risks associated with the underlying investments. Risks include exposure to international and emerging markets, small company and sector equity securities, and fixed income securities subject to changes in inflation, market valuations, liquidity, prepayments, and early redemption. The motifs are built for investors who expect to start gradual withdrawals of assets on the target date, to begin covering expenses in retirement. Target date motif asset allocations are subject to change over time in accordance with prospectus for each ETF in the motif.
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GMK Communications for Motif