1.0
A score of one (1) represents a “Liberal” company which provides direct support for, or engages in, activities that seek to promote abortion causes, agendas, activities, and the like.
RDY measures the yield of a particular stock compared to the yield on the companies comprising the S&P 500 and does so over long periods of time. Since a stock’s relative yield and relative price are inverse, one can generally conclude that as a stock’s yield is rising, its price is declining—like a bond. Consequently, a rising RDY provides an opportunity for investors to at least consider an underperforming, cheaply valued stock for purchase.
Company managements and boards of directors pay the dividend out of free cash flow, not earnings. In maturing U.S. companies these seasoned professionals often operate within a “dividend paying culture” and set the dividend as a portion of long-term, sustainable real earnings power because management teams are loathed to cut dividends.
The relative nature of the RDY metric is also important because it measures the relative attractiveness of a stock compared to its own history and compared to the S&P 500 Index.
In fallen-angel growth companies where the dividend is less of a factor in management’s calculus, we look at sales. The price-to-sales ratio measures how much investors are paying for a unit of sales, the relative price-to-sales ratio reveals what investors have historically paid for a particular company’s sales compared to what they are paying for the sales of all the companies in the S&P 500 Index.
Remaining companies are then further analyzed by using an additional fundamental investment analysis to ensure the purchase of high-quality companies that comply with the Funds’ investment objectives and social criterion. This process determines the final investment portfolio and security weights.
This additional proprietary research process analyzes Fund qualitative and quantitative data for each company. Examples include:
The valuation discipline combined with its proprietary research methodology provide a level of confidence to build a concentrated Fund portfolio of 30 to 40 names. We would construct a 30-40 stock portfolio for each Fund with an overweight to the highest conviction names. An individual security will comprise no more than 10% of the portfolio weighting and no less than 2%.
Consult with your financial advisor who will explain how the specialized 2ndVote ETFs fit in your overall portfolio allocation.
The valuation discipline combined with its proprietary research methodology provide a level of confidence to build a concentrated Fund portfolio of 30 to 40 names. We would construct a 30-40 stock portfolio for each Fund with an overweight to the highest conviction names. An individual security will comprise no more than 10% of the portfolio weighting and no less than 2%.
Consult with your financial advisor who will explain how the specialized 2ndVote ETFs fit in your overall portfolio allocation.
Asset allocation means that you spread your money among different asset classes, such as equities, fixed income, and cash equivalents. Each of these respond differently to different trends in the market, so having a blend of them in your portfolio can help you minimize losses in a market downturn.
In general, the younger you are, the higher percentage of equities you should own. This is because you have a longer investment period in which to make up losses if they occur, and the stock market has always trended up over time. More seasoned investors might have a higher percentage of fixed income holdings and be more reliant on regular income than on big stock gains.
Asset allocation is a key component of any investment strategy. Your portfolio should be diversified, and how your assets are allocated can reduce your risk. partially determines how diversified you are.
Although asset allocation is a critical part of creating a diverse portfolio, it is not quite the same concept as diversification. You can have your money allocated across several types of asset classes without properly diversifying those investments. For example, if the stocks in your portfolio are all securities in just a few large-cap companies, you may have concentration risk.
Diversifying your portfolio means covering a lot of different risk and return levels with your various investments. In order to receive favorable federal income tax treatment as a “regulated investment company” (RIC), a fund must have at least 50% of their assets invested in cash, cash items, government securities, and other securities that do not exceed 5% of fund’s total asset value. The Funds intend to qualify as RICs for federal income tax purposes.
Core holdings are the central investments of a long-term portfolio. When building your portfolio, it is essential that the core holdings have a history of reliable service and consistent returns.
A common strategy that investors use is to hold an asset that tracks the overall market for an extended time horizon, such as an S&P 500. They will then augment that asset with specific stocks or other types of funds such as Electronically Traded Funds (ETFs) to create opportunities for gaining better risk-adjusted returns.
These secondary investments are called satellite or non-core holdings. They focus on growth stocks or specific sectors of the market that are poised to outperform. Once an investor has built a strong core holding for their investment portfolio, they have more flexibility to take on risk in other areas of their portfolio.
Allocating assets based on your individual investment strategy is what almost every investor would consider good practice. Even billionaire institutional investors lose money on certain bets. But since they are properly hedged, it ensures they will not go down on a single bad investment.
A balance between equities, fixed income, and cash instruments is also important because it is a strategy that allows for macroeconomic movements beyond an investor’s horizon.
The 2ndVote ETFs are considered satellite or non core equity strategies, utilizing the growth at a reasonable price (“GARP”) investment style. GARP investing combines tenets of both growth and value investing by finding companies that show consistent earnings growth but do not sell at overly high valuations.
2ndVote portfolios are designed to maximize appropriate exposure, moderate risk, and stay true to the investment process mirroring the firm’s core tenants; all to generate long-term total returns.