Investment Strategy

Learn more about how we invest your money.

Modern Portfolio Theory (MPT)

We determine optimal asset class combinations based on a common sense application of Modern Portfolio Theory and is the foundation of our investment strategy.

Fundamentally, we create an efficient portfolio for you, designed to yield the highest possible expected return for the lowest amount of risk.

We believe assets should not be chosen individually, but should be considered in the context of how they interact with other portfolio holdings.

Benefit from broad diversification in proven asset classes.


Asset Allocation

Asset allocation is the combining of assets to achieve the highest expected return for a given level of risk. With more diversified assets at every risk level, we are able to build a portfolio that has higher expected returns regardless of how much risk you want to take on.

We optimize the portfolio for downside risk at each level of expected return, mixing assets to minimize the risk taken. We equalize portfolio composition by sector, size and style.

To reduce volatility, we diversify to ensure that a few large companies aren’t dominating your portfolio. We consider the potential downside (drawdowns) as well as the uncertainty (or expected volatility) as risk measures, and trade them off against expected return. The result allowed us to flexibly set asset allocation at every given level of risk.

An optimal investment allocation, just for you.


Investment Selection

We create and manage a cost-effective, globally-diversified passive portfolio of index-based, Exchange-Traded Funds which are compromised of 12 major asset classes and are tailored for your risk and time horizon. Unlike actively managed mutual funds, index funds have very little turnover, which means you incur much lower capital gains taxes.

Direct Indexing conveniently and affordably enables you to directly own all the stocks in a major index and harvest losses they might generate. These tax savings could be reinvested to generate significant value over time.

Historically, better results.


Rebalancing and Monitoring

Rebalancing helps to keep your portfolio on track with long-term goals, eliminate costly emotional mistakes and enhance risk-adjusted returns by creating a systematic way to buy low and sell high. As the price of underlying securities move, we automatically rebalance your portfolio to make sure you remain invested within the target mix of your portfolio allocation.

After taking tax implications and trading costs into consideration, we rebalance when dividends from ETFs accrue, a deposit or a withdrawal has been made, or if movements in the portfolio’s allocations justify a change. This is an effort to optimize returns for their intended level of risk

Unbalanced portfolios tend to suffer greater losses in market downturns.


We help you stay on track to reach your goals.

Most people don’t have the time or training to analyze and pick every stock they invest in. Qmulate protects your wealth by investing in low-fee index funds, which we rebalance according to your age, tax bracket, risk tolerance and goals.