Exchange-Traded Funds
Liquid, diversified equity and fixed-income exposure through institutional-grade ETF selection
Why ETFs Anchor Your Portfolio
Exchange-traded funds provide cost-efficient, liquid access to diversified baskets of securities—forming the foundation of disciplined multi-asset allocation.
Broad Market Exposure
Our ETF allocation delivers instant diversification across developed and emerging markets, sectors, and asset classes. Single positions provide exposure to hundreds of underlying securities, dramatically reducing concentration risk.
Institutional Selection Criteria
Portfolio managers evaluate ETFs on expense ratios, tracking error, liquidity depth, and underlying holdings quality. We select only institutional-grade funds with proven track records and deep market liquidity.
Dynamic Allocation Management
ETF positions are continuously monitored and rebalanced monthly alongside real estate, renewable energy, and forex allocations. Weighting adjusts automatically based on market conditions and your risk profile.
Strategic Advantages of ETF Allocation
Why exchange-traded funds form the core of sophisticated portfolio construction
Instant Diversification
Single ETF positions provide exposure to hundreds of securities across geographies, sectors, and market capitalizations—reducing idiosyncratic risk while maintaining targeted exposure.
Superior Liquidity
ETFs trade continuously throughout market hours with tight bid-ask spreads. Institutional liquidity enables our managers to efficiently adjust allocations in response to market movements.
Low Cost Structure
Selected ETFs carry expense ratios as low as 0.03-0.25% annually—significantly cheaper than actively managed mutual funds while providing comparable or superior diversification.
Tax Efficiency
ETF structure minimizes capital gains distributions compared to mutual funds. In-kind redemption mechanisms and low portfolio turnover enhance after-tax returns over time.
Transparency
ETF holdings are disclosed daily, providing complete visibility into underlying positions. No hidden exposure or portfolio drift—you always know what you own.
Professional Curation
Our investment committee selects from thousands of available ETFs, focusing on funds with proven tracking accuracy, institutional-grade liquidity, and optimal risk-adjusted returns.
How ETFs Build Your Portfolio
The systematic process behind strategic ETF allocation and management
Risk Profile Assessment
Our allocation engine evaluates your investment amount and risk tolerance to determine optimal ETF weighting. Conservative profiles emphasize fixed-income and dividend ETFs; growth profiles tilt toward equity and sector-specific exposure.
Strategic Fund Selection
Portfolio managers select from pre-approved ETFs covering developed markets, emerging markets, fixed income, and sector themes. Selection prioritizes low expense ratios, tight tracking error, and institutional liquidity.
Initial Position Entry
ETF positions are established systematically over the first 30 days to avoid concentration risk from single-point entry. Dollar-cost averaging reduces timing risk during volatile markets.
Continuous Monitoring
Daily oversight tracks ETF performance, tracking error, and correlation with other portfolio components. Managers evaluate market conditions and adjust tactical tilts based on volatility and momentum signals.
Monthly Rebalancing
ETF allocations are reviewed and rebalanced monthly alongside real estate, renewable energy, and forex positions. Rebalancing harvests gains from outperformers and rotates capital toward optimal opportunities while maintaining target risk exposure.
Managed ETFs vs. Self-Directed Trading
Why professional ETF management delivers superior risk-adjusted outcomes
Frequently Asked Questions
Common questions about ETF allocation in your Wealthhub portfolio
Which ETFs does Wealthhub select?
Our investment committee selects from institutional-grade ETFs covering developed markets (S&P 500, MSCI World), emerging markets, fixed income, and sector-specific themes. Selection criteria emphasize low expense ratios (0.03-0.25%), tight tracking error, deep liquidity, and proven performance across market cycles.
What percentage of my portfolio is allocated to ETFs?
ETF allocation ranges from 25-45% of your total portfolio depending on your risk profile and market conditions. Conservative portfolios emphasize fixed-income and dividend ETFs for stability, while growth-oriented portfolios tilt toward equity and sector-specific ETFs. Allocation adjusts monthly through systematic rebalancing.
How do ETFs integrate with other asset classes?
ETFs provide liquid core equity exposure that complements real estate (income/inflation protection), renewable energy (growth/thematic), and forex (diversification/macro exposure). Our allocation engine continuously evaluates correlation structures to optimize diversification benefits across all four asset categories.
Can I specify which ETFs to hold?
Wealthhub operates as a discretionary managed platform. Our Goldman Sachs-trained investment committee selects all ETF positions based on quantitative research, risk metrics, and market conditions. This professional approach consistently delivers superior risk-adjusted returns versus self-directed selection.
How are ETF positions rebalanced?
ETF allocations undergo monthly systematic rebalancing alongside real estate, renewable energy, and forex positions. Managers harvest gains from outperforming positions, rotate capital toward optimal opportunities, and maintain target risk exposure. Rebalancing discipline prevents portfolio drift and captures mean-reversion opportunities.
What returns can I expect from ETF allocation?
Historical broad market ETF returns average 7-10% annually over long periods, though past performance does not guarantee future results. Wealthhub's dynamic allocation and systematic rebalancing aim to enhance risk-adjusted returns through tactical positioning and disciplined execution. Individual outcomes vary based on market conditions and portfolio composition.
Access Professional ETF Management
Open your Wealthhub account and benefit from institutional-grade ETF selection alongside real estate, renewable energy, and forex allocation. Dynamic management from $1,000.
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