An ETF portfolio, the new asset allocation strategy has been built on four economic environment principles, including prosperity, inflation, deflation and recession, with a strategy to gather risk premiums across liquid assets.
Saxo Bank equity strategy head Peter Garnry said that Balanced Portfolio was created to engage traders, as ETFs have become a cost effective investment option to gain broad market exposure.
"We have designed this new approach to address the demands of our more long-term oriented clients, and to protect investors from unpredictable events in the market of which we have seen so many of late," Garnry added.
The new portfolio includes seven asset classes such as large cap equities, emerging market bonds, commodities, gold, corporate bonds, long-term government bonds and inflation-linked government bonds.
The performances of these assets will be monitored by seven liquid ETFs traded on US exchanges, and asset allocation will be published on a monthly basis on Tradingfloor.com.
Currently, the Balanced Portfolio is based on USD denominated ETFs, and the company is planning to provide EUR denominated ETFs from this month to meet European clients’ demand.
Saxo Bank allows clients to trade FX, CFDs, ETFs, stocks, futures, options and other derivatives through three specialized and fully integrated multi-asset trading platforms available in over 20 languages.
