NOTES

This article is in formative within the acceptable transaction based platforms Wall Street supports and promotes, but does not address the rising hybrid approach that many firms are now utilizing. This approach, does not give constructive receipt of clients assets to TPMs, MFs and to a lesser degree ETFs as they currently only utilize ETFs in the Bond and Foreign mkts, but instead this Hybrid approach take clients directly to their own individual stocks and preferreds on a fractional share basis including dividend reinvestment compounding. "The market" via ETFs, MFs abd TPMs, by virtue of holding hundreds if not thousands of individual issues when allocated together IS the market, not to mention the additional non-transparencies, multiple layered platforms and their hidden costs.
These new Hybrid approaches, by only holding a select number of value based securities (30 to 50) with similar sector weightings of given indexes within multiple MODELS, with each model representing a given Capitalization and asset class, at a low to zero cost, that is both scalable, and non-transaction driven.
These new hybrid platforms primary concern is RISK CONTROL that is tax efficiently addressed at half the cost of normal "active management" offerings. These newer Hybrid platforms should be included in this type subject matter. The investing public (especially the large retiree populous) should be informed that it is NOT performance, but risk and volatility control that should be precedent. When one IS the market by purchasing Multiple indexes, that ARE the market they are leaving themselves no options to address systemic risk on a proactive basis as well as leave themselves exposed to punitive non-transparent costs. Lets address these issues first in the name of risk control, before we over-generalize "active management" as a dying approach. It is not a cut and dry proposition, but one that should utilize both disciplines along with newer hybrid offerings.