Buffered ETF Model
The goal is to provide a more predictable risk-adjusted rate of return. The structure of a buffered ETF is to provide a more predictable floor and ceiling on the portfolio's annual rate of return.
This portfolio is designed for the investor who desires a high degree of risk/volatility control and a more consistent long-term rate of return.
The primary goal of the Buffered ETF is to reduce losses during declining market periods. All ETFs provide a downside buffer between 6 to 20%. These buffers will guard against downside risk up to the buffer limits. All ETFs in the portfolio will contain either an annual or quarterly reset.
Additionally, the Risk Management Indicators at Think 2 Retire are also applied to this model in an effort to provide additional volatility control and long-term growth. See the website's Risk Management Indicator and Video Library section for more details.
The allocation percentages mentioned in the example portfolio below are not those suggested in the current model allocation. They're for illustrative purposes only.
As always, the subscriber is welcome to deviate from the model's current allocation suggestions to meet their individual needs.
Example Portfolio
| EALT | 6.7% | 15% | 50% |
| ZALT | 3.35% | 10% | 30% |
| BALT | 2.75% | 20% | 20% |
Each of these ETF positions will automatically reset quarterly. The Buffer tends to stay constant, and the cap can increase or decrease.
