At Vault, we strive to achieve the best risk-adjusted, net-of-cost returns for our customers. We employ Nobel prize-winning research, known as the Modern Portfolio Theory (MPT) and invest in low-cost exchange-traded funds (ETFs) that seek to track specific stock and bond indices.
Your portfolio is intelligently invested into the ideal mix of diversified stocks and bonds (via ETFs), based on the information you provide to us. At Vault, we believe that diversification is critical to a successful investment strategy because it reduces overall investment risk, volatility (or how much a portfolio fluctuates) and provides better risk-adjusted returns over time.
Based on extensive research and analysis, our investment team utilizes the following asset classes:
US Large Cap Value
US Mid Cap Value
US Small Cap Value
Emerging Market Stocks
US Investment Grade Corporate Bonds
US Government Bonds
Emerging Market Bonds
US High-Yield Corporate Bonds
At Vault, we utilize low-cost exchange-traded funds (ETFs). ETFs allow our customers to gain exposure to the asset classes listed above without breaking the bank. The cost of Vault’s ETFs are significantly less expensive than the average mutual fund, while also maximizing the efficiency of our customer’s portfolios.
Rebalancing and Ongoing Management
Over time, the mix of stocks and bonds in your portfolio drifts away from the target allocation (where they should be), which can lead to too much, or not enough risk in your portfolio. For this reason, Vault periodically rebalances your portfolio.