Investment Strategy

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We employ the terms MARKTORS® to describe our innovative, world-wide, investment discipline. MARKTORS® simply combines two words: Markets and Sectors.

We invest in the world’s most promising markets and sectorsi, including those in the United States, in other developed markets, and in rapidly-growing emerging markets. Our expertise includes both growth and wealth preservation.

The MARKTORS® investment discipline applies old-fashioned, hard-nosed valuation methods to the new world of market and sector investing.

The MARKTORS® discipline alerts us to go to cash or to defensive positions when U.S. or world markets do not meet our strict valuation criteria.

We helped pioneer the use of low-cost, U.S.-traded exchange-traded funds (ETFs) to access the world’s most promising markets and sectors.

Why Invest in Markets and Sectors?

Market and sector investing with ETFs may offer many advantages over traditional mutual funds, or individual stock and bond portfolios. These include:

  • Automatic diversification. With a single investment you may own from 30 to 3,000 companies within a market and sector. This empowers you to participate in a broad spectrum of companies in the U.S. and around the world.
  • Reduced risk. When you broadly diversify within a market or sector, or among them, your portfolio will be less damaged by the failure of any individual company. This is especially important when investing outside the U.S.
  • Performance. Investing in markets and sectors can be every bit as productive as investing in individual stocksi.

Why Use Exchange Traded Funds (ETFs)?

U.S.-traded exchange traded funds (ETFs) are increasingly popular with investors. They are typically passive investments. ETFs efficientlyiii track the performance of markets and sectors in the U.S. and around the world.

We actively manage these passive investments to efficiently access the world’s most promising markets and sectors.

These include markets and sectors in the United States, in other developed countries, and in rapidly-growing emerging markets.

We use the rapidly-growing (and increasingly complex) universe of U.S.-traded, index-tracking, exchange-traded funds (ETFs).

There are now more than 1300 world-wide market and sector indices that are faithfully tracked by U.S.-traded ETFs. Meanwhile, the number of new index-tracking, U.S.-traded ETFs is expanding rapidly. While this adds complexity, it also provides a level of opportunity previously unavailable to investors.

Low-cost ETFs may offer many additional advantages, such as:

  • ETFs are typically much less expensive than either traditional mutual funds, or comparably-diversified individual stock or bond portfolios.
  • ETFs typically provide faithful market and sector index-tracking performance.
    • Most actively-managed mutual funds consistently fail to outperform the market or sector index against which they compete, despite their higher costs.1
    • Individual stock and bond portfolios do not realistically offer the opportunity to track the performance of entire markets or sectors.
  • ETFs are highly liquid. They trade like stocks throughout the day.
    • Actively-managed mutual funds are only traded at the end of each trading day.
  • ETFs facilitate going to cash or to defensive positions much more quickly and cost-effectively.
  • ETFs are typically more tax efficient than mutual funds.

How We Do It – MARKTORS’® Unique Approach

First and foremost, we do not use often ineffective buy and-hold, U.S.-centric, portfolio models. We identify what we regard as the world’s most promising markets and sectors, and we go to cash or to defensive positions when U.S. or world markets do not meet our strict requirementsiv.

We apply old-fashioned, hard-nosed valuation methodsv to the new world of market and sector investing. The data we use was simply not uniformly compiled just a few years ago. We are the first to apply our strict discipline to this new – and, we think, preferred – world of investing.

We use only the most appropriate, low-cost, exchange-traded funds (ETFs) to efficiently access each market and sector. These passive, low cost ETFs are specifically designed by third parties to closely track the performance of the markets and sectors in which we may invest.

America’s greatest export has always been FREEDOM. Now, thanks to America, free enterprise is exploding throughout the world. You may participate in this remarkable explosion of growth through MARKTORS®.

i The phrase “most promising markets and sectors” refers only to the markets and sectors our investment discipline identifies. Obviously, results can never be guaranteed. All investing includes risk, including the risk of losing your invested principal.
ii For one example, please see our MARKTORS® Back-Tested Performance brochure, with complete disclosures. You may request a copy by contacting our home office.
iii Because even low-cost ETFs charge annual fees, over time, the performance of a typical index-tracking ETF will be slightly less than the performance of the index itself.
iv All investing, even through us, involves the risk of loss, including the loss of your invested principal.
v Additional information regarding our proprietary models is available upon request.
1 Source: Quarterly S&P SPIVA Report

Copyright ©2012 DeGreen Capital Management

MATERIAL DISCLOSURE FOR DEGREEN CAPITAL MANAGEMENT LLC. DEGREEN CAPITAL MANAGEMENT LLC IS A FEE-ONLY INVESTMENT ADVISOR REGISTERED WITH THE STATE OF ARIZONA, AND MAY ACCEPT CLIENTS THROUGHOUT THE UNITED STATES. A MORE DETAILED DESCRIPTION OF THE COMPANY, ITS MANAGEMENT AND PRACTICES IS CONTAINED IN ITS REGISTRATION DOCUMENT, FORM ADV PART II. A COPY OF THIS FORM MAY BE OBTAINED BY CONTACTING THE COMPANY AT 4800 NORTH SCOTTSDALE ROAD, SUITE 1500, SCOTTSDALE, AZ 85251. PHONE: 480.609.9900. PAST PERFORMANCE OF SECURITIES OR OF INVESTMENT STRATEGIES EMPLOYED, IS NO GUARANTEE OF FUTURE RESULTS OR RETURNS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTMENT, WHEN SOLD OR REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. INVESTMENTS IN FOREIGN MARKETS, EVEN WHEN MADE THROUGH U.S.-TRADED ETFS, ARE SUBJECT TO VARIOUS INVESTMENT, TRADING, AND FOREIGN EXCHANGE RISKS, AND OTHER RISKS, INCLUDING THE RISK OF POSSIBLE LOSS OF PRINCIPAL. ALL INVESTING INVOLVES RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. PROSPECTIVE INVESTORS SHOULD UNDERSTAND THESE POTENTIAL RISKS BEFORE INVESTING.