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Sarwa's investment philosophy and portfolio details.
What are the Sarwa Portfolios?
Our algorithms ensure clients have a portfolio that fits a level of risk they're comfortable with. The main portfolios range from Ultra-Conservative to Growth portfolios. If your risk profile falls in-between these classific
What is compound interest? And why does it matter?
Here’s an example to explain further: Take two friends: One starts investing $5,000 a year at the age of 25, and the other starts investing the same amount at the age of 35. They both retire at the age of 65. The one who started earlier would have a ne
What are ETFs?
ETFs are traded like stocks on stock exchanges and often times track an index such as the Dow Jones or S&P 500. Rather than buying many individual stocks, bonds, real estate, etc., one can use an ETF to create the same level of diversity, at a fraction of the price.
What long-term return can I expect?
The 3-6% might disappoint you, but it doesn't really matter what we think the expected return is going to be because no one can predict it. That's why you should focus on what you can control: Costs - Keep your costs low. A lot of traditional invest
How does rebalancing work?
Over time, as the value of individual ETFs in a diversified portfolio deviate from their target allocation, our automated technology ensures that your portfolio weights are rebalanced in response to price changes. The difference between the target weights for your portfolio and the actual weights in your current portf
Why do you use ETFs?
Our investment philosophy is based on Modern Portfolio Theory. MPT won a Nobel Prize! ETFs bring a lot of different securities together and carry much
What is a portfolio?
Sarwa clients get a tailor-made diversified portfolio Think about it as being a folder that has all your investments in one place. the choice of investments in your portfolio reflects how much risk/return is recommended for you.
What is diversification?
Do not put all your eggs in one basket We’ve all heard the expression. This saying is a perfect example of the principles of diversification. Diversification is the idea of spreading your money across different investments (stocks, bonds, real estate, etc.), preferably those with no/limited correlation. The idea here is that the overall stock market is volatile and filled with unexpected outcomes. Diversifying, or separating your eggs into different baskets ensures that in volatile ec
How does Sarwa choose their ETFs?
The aim of this process is to help investors build portfolios that provide them with maximum possible benefits of diversification. The approach is based off Nobel Prize winning research by Harry Markowitz -Modern Portfolio Theory- with adjustments that reflect our modern understanding of the strengths and
What is Dividend Re-investment?
Dividends? Dividend Re-investment? Too much jargon? Don’t worry, we’ll break this down for you! When you invest in a company, or purchase shares of a publicly traded company, you become a shareholder. With this prestigious title, you’re also entitled to a cut of the profits as a reward for buying shares. This pay-out is known as a dividend, and is usually quoted in dollars per share. Dividend re-investment means these cash pay-outs a
Why ETFs and not Mutual Funds?
Compared to mutual funds, ETFs are: Lower cost. Sarwa's selected ETFs' average expense ratio is roughly 0.1%, while mutual funds' expense ratio is 1-2%. More liquid since they trade like stocks, meaning you can enter and exit the markets faster Passive, while mutual funds are active investments. Studies(https://www.economist.com/finance-and-economics/2017/06/24/fund-managers-rarely-outperform-the-market-