Strategy


Rewarding Smart Investor Behavior


Using ETFs and other exchange traded products.

3D Takes a Long-Term, Risk-Managed Approach to Investing

Our value-added comes from building an elegantly designed and dynamically-managed ETF portfolio that serves as a core, foundational holding either on a stand-alone basis or within a broader investment program.

  • Long-Term
  • Globally Diversified
  • Never Static

Why Invest with ETFs

Not only are ETFs more flexible, cost-effective, and tax-efficient versus other investment vehicles, you ultimately know what investment exposure you’re buying and have a real-time pricing mechanism to gauge the value of what it is you’re buying.

Cost Effective

Liquid In Nature

Fee & Security Transparency

Tax Efficient

Targeted Market Exposure

More About ETFs

Why ETFs (and Why Strategic Beta ETFs)?

We find it a helpful exercise to revisit some of our fundamental investment principals and share these thoughts with our partners and clients. Read More.

ETF Product Development: Innovation Versus Over-Engineering

As the ETF product landscape has exploded with new product ideas, innovation can easily turn into over-engineering as the complexities embedded within ETF strategies grow. Read More

3D Dynamic Approach

3D uses a dynamic asset allocation approach that blends the strategic benefits of long-term investing with the flexibility to position around significant market-moving events. 3D’s ETF portfolios are built upon time-tested investment themes afforded by the market as compensation for taking on risk.

Factor-Based Approach to Investing

3D’s approach is to invest across time-tested factors (or strategic betas) that have historically rewarded investors over the long run. Our dynamic process identifies and weights factor exposures across major global equity markets rather than rotating in and out of market regions.

A Mosaic of Inputs Feed Into Process

3D believes in a dynamic approach to investing and not one predicated on ‘set-it-and-forget-it’ oblivious to the market environment.

Incorporating internal market- and macro-based metrics and external feedback from advisors and ETF sponsors, the firm’s Investment Committee will periodically review market conditions and determine whether such conditions warrant dynamic adjustments to the model portfolio.

Arriving at the Model Portfolio

3D uses a methodical process for ETF portfolio construction that incorporates a strategic framework for setting investment objectives and asset allocation.

1

Investment Objective

Risk-Based or Stand-Alone

3D first determines the investment objective which provides the context for what types of risk the portfolio should bear in relation to the role it is serving within the broader program.

2

Strategic Asset Allocation

Index Analysis

3D builds a strategic asset allocation framework considering ‘Three Dimensions (Regions, Sectors, Strategic Betas)’ of investing and then identifies market indices that best capture these dimensions keeping in mind the goals being targeted.

3

Dynamic Adjustments

Shifting Market Developments

Incorporating internal market- and macro-based metrics and external feedback from advisors and ETF sponsors, the 3D’s Investment Committee will periodically review market conditions and determine whether such conditions warrant dynamic adjustments to the model portfolio.

4

Investment Due Diligence

ETF Sponsors

We conduct due diligence on ETF sponsors assessing their ability to cost-effectively execute the underlying ETF strategies as well as their commitment to the fund offerings.

5

Portfolio Construction

Absolute and Relative Risk Analysis

We perform quantitative risk analysis when constructing portfolios and monitoring their exposures. We incorporate historical risk attributes and correlations across different asset sleeves as well as forward-looking estimates on risk exposures to arrive at the desired portfolio.

6

Ongoing Monitoring

Attribution / Market Commentary

Given that 3D invests in ETFs, we have the ability to see through the portfolio down to the security level and then aggregate security level data into portfolio-level risk characteristics. In the tradition of the turnkey level of service provided to our clients, 3D will periodically update investors with published market commentary and webinar presentations on topics ranging from capital market outlooks to retirement income planning.

Advisor Registration

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We are pleased to announce 3D Asset Management’s acquisition by 55 Capital, which was founded by ETF pioneers and investment thought leaders.

We are excited about this acquisition because it brings together two innovative firms with complementary products and common values. We believe it will be very additive to you and your practice. This acquisition will significantly enhance our capabilities and allow us to provide a wider array of products and services.

For more details, please click below.