Investing made simple.
Do-it-yourself Investing Software.

Defining your own asset allocation

The most important step when starting to save money for the future is to establish a solid asset allocation based on your unique personal circumstances. Investplex’s algorithms will help you identify and select the right asset class for you (e.g. bonds, stocks, commodities, or reits) based on your own risk tolerance, time horizon and investment objectives.

Investment Selection

Investplex’s investment selection process has a conservative approach; rather than trying to find the hottest stock or the latest "unique strategy" mutual fund, we focus our time on finding the most tradable, transparent and low-cost ETFs that give you the performance of specific sectors and industries in the economy. Plain and simple.

ETF Investing: Two main reasons why we like ETFs

ETFs have been available in the US since 1993 and their popularity is growing exponentially. ETFs have gone from $66 billion in 2000 to $1.37 trillion in assets in 2013. In simple terms, ETFs are a pool of prepackaged securities (e.g. bonds, stocks, commodities, and reits) that replicate the composition and performance of specific sectors or industries in the market. They trade like a stock and offer the diversification of a mutual fund:

Smarter than buying a single stock.

They’re more diversified and less volatile. Instead of buying Google or Facebook stock, you can buy the Nasdaq 100 ETF and have exposure not only to those two companies but also to the whole technology sector. It is like buying 100 stocks in just one trade.

Less expensive than a mutual fund.

A mutual fund is managed by a team of people that tries to find “good deals” in the market. Someone has to pay for this “research and intelligence” and it ends up being investors. Investors can pay up to 2 percent in mutual fund management fees. By contrast, a typical ETF has a 0.2 percent management fee because ETFs don’t need a portfolio manager or a group of research analysts in order to invest. An ETF follows a passive approach and just replicates a particular market index (e.g. Nasdaq 100 Index). There is no need to select individual securities in the process.

Modern portfolio theory

Investplex applies modern portfolio theory (MPT) when building portfolios. Rather than looking at the risk (volatility) of an individual ETF, Investplex software analyzes how adding that ETF contributes to the volatility of the overall portfolio. The idea behind this is to select ETFs with prices that move differently under the same market conditions (this is called low correlation).

Portfolio monitoring and rebalancing

We monitor your portfolio 24/7 and suggest adjustments depending on the degree to which your portfolio’s current asset allocation has drifted away from your original target asset allocation. Investplex’s algorithms will maintain your portfolio’s risk level close to your own level of risk tolerance.

Diversification to reduce risk and maximize returns

Once Investplex defines your own willingness and ability to take risks, a diversified investment portfolio composed of low correlation ETFs will be suggested to you in order to reduce the overall portfolio risk and maximize expected returns.

Start building wealth today! Retire sooner!
Sign Up