PT  - JOURNAL ARTICLE
AU  - Noël Amenc
AU  - Felix Goltz
TI  - ETFs in Core-Satellite Portfolio Management
DP  - 2007 Sep 21
TA  - ETFs and Indexing
PG  - 75--88
VI  - 2007
IP  - 1
4099  - http://guides.pm-research.com/content/2007/1/75.short
4100  - http://guides.pm-research.com/content/2007/1/75.full
AB  - This article outlines the possible uses of ETFs in core satellite portfolio management. First, the concept of core satellite portfolio management is introduced along with its benefits. Second, concrete examples of using ETFs in a core satellite framework are presented. The illustrations show that (i) the efficient use of ETFs for sub-segments of the bond or equity markets allows investors to create portfolios that beat broad market indices in terms of their risk/return properties, and (ii) a dynamic allocation strategy between the core and the satellite portfolio allows investors to gain access to the outperformance of the satellite, while controlling the risk of underperformance.