CEO Vijay Vaidyanathan Featured in Yahoo! News

Optimal Asset Management CEO was featured in a recent Yahoo! News article on passive investing strategies. Speaking on the growth of actively managed ETFs, the article quotes, In some cases, what looks like a passive fund may be an active fund in disguise, says Vijay Vaidyanathan, CEO of Optimal Asset Management, citing active ETFs as an example.…

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A Smarter Savings Alternative

Your checking and savings accounts have been paying near-zero for years, and until recently, there have been few decent alternatives. That has dramatically changed in recent months. Higher-yield alternatives (well above 2% at the moment) are available in a way we haven’t seen in over a decade. The goal of the “Short-Term Yield” strategy is to take…

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Optimal’s March 2019 rebalance of our client’s custom portfolios   

Optimal’s March 2019 rebalance of our client’s custom portfolios    To ‘lift the curtain’ a bit on how we manage our clients’ portfolios, today (March 6) we implemented our quarterly rebalance of all our accounts. These rebalances are done in a tax-efficient, dynamic manner, reflecting changes in the market and in each account. For taxable…

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How to use Optimal’s risk controls to set S&P500 drawdown constraints

Investors dislike volatility, but what they really despise are drawdowns. Drawdowns are a measure of pain - it’s money they feel they had at one point, but is now gone. As an advisor once remarked to me, “My clients may not understand standard deviation or tracking error, but they certainly understand when they’re losing money!” Recognizing the…

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What’s a Monte Carlo Simulation?

We can’t predict the future, so where do we put our money?Every investor understands that investing involves uncertainty. Next year might be choppy or it might be smooth. The market might be up, down, or flat. In short, we do not know. Investments that you consider “safe” such as bonds can lose value because of changes in interest rates. We all…

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The second most important thing when selecting an ETF

Q&A with Vijay Vaidyanathan, PhD, CEO at Optimal Asset Management   Q: What are the most important considerations when selecting an ETF? Should fees be considered? A: For most investors, fees tend to be at the top of their concerns. While I do think that fees are important, I believe it’s a mistake to place it at the very top of the list…

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When does Tax-Loss Harvesting with Direct Indexing Work?

Investing directly in the stocks underlying an index through separately-managed accounts opens up numerous benefits unavailable through pooled vehicles such as ETFs or mutual funds.  Of these, perhaps the most noteworthy benefit available to taxable investors is the potential for increasing your after-tax return through tax-loss harvesting. In…

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Direct Indexing: Not just for Institutions Anymore

Direct Indexing is gaining traction as an attractive equity investment alternative to many different types of investors, beyond the traditional large institutional class. Direct Indexing is simple, cost-efficient and offers exceptional flexibility compared to ETFs. What’s Direct Indexing? Here is how I see it, in a nutshell: The investor gains…

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Is the X-Factor a Combination of Factors?

Are multiple factors better than one? Discover how advisors are implementing factor combinations to mitigate single-factor tracking error, better align with historically favorable market cycles, and diversify portfolios.

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