What Is Smart Diversification®?

Smart Diversification is a quantitative approach to asset allocation.

Smart Diversification reduces potentially unproductive asset classes through a disciplined, mathematical, evidence-based approach.

Consider:

  • Asset allocation is the most critical decision in the investment process because it affects risk and results.
  • Investment markets typically spend 80% of their time declining and recovering.
  • Investment markets typically spend less than 20% of their time making money for clients.
  • Static allocations can never adequately manage dynamic market risk.

The idea is simple: Minimize loss, maximize gains, and help clients comfortably reach their goal.

It’s Easy to Get Started, and It’s Free!

Choose Your Plan

Does It Work?

You know all the disclaimers—past performance doesn’t guarantee jack and all that. But what you want to know is, “Does this work?”

We can’t predict the future and won’t pretend to. But we can show you Smart Diversification in action with our Smart Diversification Indexes.

A Closer Look

Markets spend a vast majority of their time declining and recovering. Only a small fraction of time is spent creating new wealth. We want to change that.

With Smart Diversification, we aim to minimize decline and maximize growth by actively adjusting allocations according to market conditions. That can make clients more comfortable and keep them engaged in the plan you put together for them.

That’s what I already do, you might be thinking.

Here’s the difference: We don’t shift based on our (or anyone’s) opinions. Instead, we’ve built algorithms that are repeatable and evidence-based. As we like to say: Trust math, not opinions.

Smart Diversification might be right for you and your clients if you know that:

  • Keeping portfolio allocations static (regardless of market conditions) is a bad way to manage risk
  • Shifting your clients’ portfolio allocations based on an educated guess isn’t smart or repeatable

Let’s face it—the old methods simply aren’t working. And your clients’ portfolios are likely spending unnecessary time in decline and recovery as a result. It’s time for a change.