Craig Toberman, Founder of fee-only financial planning firm Toberman Wealth, was recently featured by Bloomberg Wealth on how to protect your investment portfolio in a volatile market.
Craig recommends that investors “consider S&P funds with an ‘equal-weighted’ basis”. Why?
There is no rebalancing feature built into the S&P 500, which is ‘market-cap-weighted’. An exchange-traded fund that tracks the index can be heavily weighted toward the largest companies, so it isn’t a surefire way to diversify.
Craig also adds that “the top 10 companies (in the S&P 500) make up over 30% of the fund” and points out that “many retirement funds that many Americans assume are diversified are heavily weighted tech”.
With equal-weighted S&P 500 funds, every stock has 1/500th of the weighting, meaning that the top 10 hold 2% of the fund. “Such funds may have higher fees than their market-cap-weighted peers because they require a bit more management”, Craig explains.
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Growth is exciting, but it can come with plenty of questions and concerns. If you need help with retirement planning or managing your investments, feel free to give us a call or send us a message anytime.
Craig Toberman is the Founder of Toberman Wealth – a fee-only financial advisor based in St. Louis. He assists families and businesses with strategic financial planning and long-term wealth management. He has over a decade of experience in financial services and has crafted custom financial plans for hundreds of families and businesses.
Craig received a Bachelor of Science (B.S.) degree in Agricultural and Consumer Economics from the University of Illinois and a Master of Business Administration (M.B.A.) degree in Finance from Saint Louis University. He is a Certified Financial Planner (CFP), Chartered Financial Analyst (CFA) charterholder, and Certified Public Accountant (CPA).
Craig is a member of the National Association of Personal Financial Advisors (NAPFA), Fee-Only Network, and XY Planning Network.
Craig lives in the greater St. Louis area with his wife, Ally and son, Hank.