PT  - JOURNAL ARTICLE
AU  - Ronald J. Ryan
TI  - ETFs as a Dynamic Asset Allocation Tool
DP  - 2001 Sep 21
TA  - ETFs and Indexing
PG  - 95--97
VI  - 2001
IP  - 1
4099  - http://guides.pm-research.com/content/2001/1/95.short
4100  - http://guides.pm-research.com/content/2001/1/95.full
AB  - Studies by Brinson, Beebower, and Horn of 1986 and a recent study by Ryan Labs all prove that asset allocation accounts for over 95% of the total return for a typical pension plan sponsor or any client allowed to invest in an array of asset classes. However, asset allocation tends to be a passive function reviewed annually or even triennially. Asset management is the active asset decision yet historically affords little value, if any, over the index benchmark (especially after fees). Since index data drive the asset allocation decision, a series of index funds (ETFs) would be a natural extension. ETFs provide a dynamic asset allocation tool to either rebalance the asset allocation process or to be the total asset class decision process. Currently there are over 100 ETF index fund choices with more on the way.