The DIAS Lite Conservative Portfolio – Under the Hood


Posted in: Economics, General, Stock Market, Thought of the Week

The DIAS Lite Conservative (CI Lite) portfolio was created for savers as an investment in low risk assets to preserve the capital base. CI Lite is a simplified version of the Conservative Income (CI) portfolio. CI Lite is geared toward investors that do not have $50,000 to invest in CI but would like the same diversification as the CI portfolio.

The composition of CI Lite is a pure exchange-traded-funds (ETFs) portfolio. A single ETF can hold several hundred bonds so investors gain immediate diversification to prevent any substantial loss from a single default. Not to mention, ETFs are extremely cost efficient and very easy to buy and sell. All in all, an investor can hold significantly fewer securities but still gain the advantages of capital preservation and income generation.

CI and CI Lite are designed to deliver long-term income generation with strict focus on preserving the capital base. In the short term, the performance will vary due to differences in composition, but long-term investors must be patient in order to use these income generators to their full potential. Read this week’s Thought of the Week to learn more about the CI Lite portfolio.

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As an Investment Advisory Representative working in conjunction with Global Financial Private Capital (GFPC) we are provided weekly thoughts on what is happening in the economy and the market. Written by our investment committee at GFPC we find these thoughts to be informative and interesting.