Equity Strategies

Core Growth Portfolio

Executive Summary 

The InSight Core Growth Portfolio is designed for clients with a long term view for the committed dollars and has an above-average tolerance for near term volatility. The constituents of the portfolio are from traditionally growth heavy sectors of the market and companies that meet our profile and expectations for growth.

The portfolio is created from the universe of the S&P 500 and other developed international individual names. The portfolio is more exposed to market sectors that have long term track records of higher growth and return on equity for investors. This portfolio is traditionally overweight Technology, Consumer Cyclical, Communication Services, and Healthcare, and underweight Defensive, Cyclical, Energy, and Basic Materials.

The portfolio consists of both ETFs (Exchange Traded Funds) and Individual Stocks with the purpose of seeking out higher risk-adjusted growth from the fundamental analysis. The leading indicators for success in long term growth are as such:

  • A sound balance sheet with revenues that can fuel corporate growth and acquisition
  • Growing Revenues and YoY balance sheet expansion
  • Capital efficiency ratios competitive to their peers including a high and growing ROE metric
  • History of pro-growth activity including acquisition and investment in growth efforts
  • Participations in sectors that grow beyond GDP
  • Companies that have growth stories we see as intrinsic to the way we will do things in the future

Who is right for the Core Growth Portfolio?

Investors who have gone through the InSight-Full® planning process and as a result have qualified for this portfolio in their opportunity set. As a result of their personal appetite for risk, long term time horizon, and overall appropriateness of this investment philosophy. They are generally: 

  • Willing to accept volatility above the market
  • Committed to the long term horizon of the business cycle
  • Understanding of the risk-reward trade-off
  • Prefer current growth to current income

Cost Considerations:

The investments in the Core Growth Portfolio are largely from low-cost index ETFs and individual stocks and have a weighted cost on assets of below 0.15%. There are no other management fees, kickbacks, or concessions the investor pays as part of the cost of the portfolio.

Tax Considerations:

The Core Growth Portfolio is suitable for inclusion in a Roth, IRA, or other qualified accounts.

The use of ETFs and Individual Stocks provides a low and controllable profile of exposures to taxation that we can manage in-house at InSight. Additionally, we feel this portfolio is acceptable to incorporate in taxable accounts and preferable to the use of mutual funds and other pass-through entities.

InSight uses tax loss harvesting to mitigate client taxation over time.

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