Investing

Acorn's Investment Strategies

This diversified equity strategy utilizes primarily structured mutual funds (DFA Funds), exchanged traded funds (ETFs), and index funds.  These funds invest in securities of U.S. companies, non-U.S. companies in both developed and emerging markets, and real estate securities.

This strategy tends to have a balance of value and growth as well as large, medium and small capitalization securities, suitable for investors seeking income and long term capital appreciation.

This diversified equity strategy utilizes primarily structured mutual funds (DFA Funds), exchanged traded funds (ETFs), and index funds.  These funds invest in securities of U.S. companies, non-U.S. companies in both developed and emerging markets, and real estate securities.

This strategy has an increased bias towards value using multiple asset classes and more emphasis on smaller capitalization securities than the conservative strategy, and is suitable for investors seeking above average returns through long term capital appreciation.

This diversified equity strategy utilizes primarily structured mutual funds (DFA Funds), exchanged traded funds (ETFs), and index funds.  These funds invest in securities of U.S. companies, non-U.S. companies in both developed and emerging markets, and real estate securities.

This strategy has a higher non-U.S. company component as well as a greater value tilt and smaller capitalization securities than the moderate strategy, and is suitable for investors with a higher tolerance for risk seeking higher returns through long term capital appreciation.

This diversified strategy will be a combination of equity and fixed income. The equity portion can be in one of our equity strategies: Conservative, Moderate, Aggressive, Tax Managed, or Environment, Social & Governance. The fixed income portion can be in one of our fixed income strategies: Global Core or Tax Exempt.

The allocations are as follows:

Equity Portion Fixed Income Portion
Global Balanced 80/20 80% 20%
Global Balanced 60/40 60% 40%
Global Balanced 40/60 40% 60%
Global Balanced 20/80 20% 80%

The Equity Portion maybe invested in one of the following:

  • Conservative Equity
  • Moderate Equity
  • Aggressive Equity
  • Tax Managed Equity
  • Environment, Social & Governance Equity

The Fixed Income portion maybe invested in one of the following:

  • Global Core Fixed Income
  • Tax Exempt Fixed Income

This diversified fixed income strategy will invest in a combination of structured fixed income funds (DFA funds), exchange traded funds (ETFs), and index funds whose investment objectives are to achieve stable real returns in excess of the rate of inflation with a minimum of risk, to earn current income consistent with preservation of capital, and to seek a market rate of return for a global fixed-income portfolio with low relative volatility of returns. The non-US dollar portion of the DFA funds will also  employ forward foreign currency contracts to hedge against fluctuations in currency exchange rates. This strategy is consistent with the philosophy that fixed income instruments should serve the  role of limiting an overall portfolio’s volatility.

This diversified fixed income strategy will invest in a combination of structured fixed income funds (DFA funds), exchange traded funds (ETFs), and index funds whose investment objectives are to provide current income that is exempt from federal personal income taxes, to maximize total returns from the universe of debt obligations of the US government and agencies, and to earn current income consistent with preservation of capital. This strategy is consistent with the philosophy that fixed income instruments should serve the role of limiting an overall portfolio’s volatility.

One of the following DFA mutual funds is also available:

DIMENSIONAL GLOBAL EQUITY PORTFOLIO
DIMENSIONAL GLOBAL ALLOCATION 60/40
DIMENSIONAL GLOBAL ALLOCATION 25/75
DIMENSIONAL 2005 TARGET DATE RET INCOME FUND
DIMENSIONAL 2010 TARGET DATE RET INCOME FUND
DIMENSIONAL 2015  TARGET DATE RET INCOME FUND
DIMENSIONAL 2020 TARGET DATE RET INCOME FUND
DIMENSIONAL 2025 TARGET DATE RET INCOME FUND
DIMENSIONAL 2030 TARGET DATE RET INCOME FUND
DIMENSIONAL 2035 TARGET DATE RET INCOME FUND
DIMENSIONAL 2040 TARGET DATE RET INCOME FUND
DIMENSIONAL 2045 TARGET DATE RET INCOME FUND
DIMENSIONAL 2050 TARGET DATE RET INCOME FUND
DIMENSIONAL 2055 TARGET DATE RET INCOME FUND
DIMENSIONAL 2060 TARGET DATE RET INCOME FUND

Over time the allocation of the underlying funds for the above Target Date Funds is expected to change from being less conservative (higher equity allocation) to more conservative (lesser equity allocation) until reaching the ‘landing point’ which is 15 years after the target date when the portfolio reaches its final static asset allocation.

This diversified equity strategy utilizes primarily structured mutual funds (DFA Funds), exchanged traded funds (ETFs), and index funds.  These funds invest in securities of U.S. companies, non-U.S. companies in both developed and emerging markets, and real estate securities.

This strategy seeks to minimize the impact of federal taxes on returns by using funds that defer the realization of net capital gains, particularly short-term capital gains, in order to minimize the taxable distributions to investors. The performance of this strategy may deviate from that of non-tax managed Moderate Equity Strategy. This is suitable only for taxable accounts.

This diversified equity strategy utilizes primarily structured mutual funds (DFA Funds), exchanged traded funds (ETFs), and index funds.  These funds invest in securities of U.S. companies, non-U.S. companies in both developed and emerging markets, and real estate securities.

This  diversified  investment  strategy  includes  both sustainable and responsible investing, and will invest in companies that operate ethically, provide social benefits, are environment friendly and free of sweatshop labor. This strategy seeks to exclude from its  investment portfolio those companies that are identified as businesses that are perceived to be harmful to  the general population such as companies engaged in military weapons, weapons of mass destruction,  tobacco, alcohol, gambling, pornography, child labor infractions, and other similar operations.

To learn more about Acorn’s Investment Vehicles please click here.