It’s always best to keep in mind that in our business, investment outcomes should be scrutinized not only for what they are but, more importantly, for whether or not there is a solid decision-making process behind them. I feel we do an exceptional job making decisions on behalf of clients given the information we have at the time. But even after making good decisions, unfortunate results can still occur simply due to randomness and luck.
*A proprietary expected return measurement CLS calculates as a complement to our Risk Budgeting methodology. It is constructed by first building a capital market assumption (CMA) for a broad asset class, then adding a valuation overlay, a technical overlay, and a cost adjustment for each ETF. The end result is an expected annualized return (the “CLS Score”) for every ETF we track.