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ETF Benefits
CIM constructs portfolios exclusively using low-cost exchange-traded funds (ETFs). An ETF is a collection of securities
that tracks the performance of a broad market index or specific market sector. ETFs trade in highly liquid markets and
are a pure play on a specific index or sector. The transparency and low expenses of these funds make them the
ideal investment vehicle for CIM's InvestFlex™ Strategies.
The ETF marketplace continues to grow and the vast range of investible ETF's includes multiple asset classes, sectors and
investment styles not limited to broad indexes such as the S&P 500, NASDAQ Composite and DJIA. This exposure can provide a
portfolio with true diversification spread over various asset classes, markets and sectors in a low-cost, highly liquid and
transparent manner.
Low Cost
ETFs typically have lower management fees and expense ratios than actively managed mutual funds. The majority of ETFs are
designed to track a specific market benchmark or sector, which can mean fewer trades and lower portfolio turnover.
Tax Efficient
As a passively managed investment, ETF's commonly realize fewer capital gains than actively managed mutual funds reducing
the frequency of tax gain distributions.
Transparent
ETF's provide investors with all securities held and respective allocations on a daily basis. Providing investors with all
the required information needed to make informed investments using ETFs.
Liquid
Similar to individual stocks, ETFs trade throughout the day providing investors added liquidity vs. actively managed mutual
funds. So investors can enter or exit an ETF at any time during the trading day at a desired market value.
Vast Exposure
ETFs provide exposure to a diverse universe of asset classes and specific market sectors which, until recently, were not
readily available to the average investor.
*ETFs are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could
include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments,
and commodities, to name a few. For more detailed information, please refer to each ETF's investment prospectus.
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