At Portfolio Solutions® we know that a robust "goals-based" planning process is the best way to create a customized financial plan tailored to meet your individual needs and objectives. It is vital to create a financial plan that accomplishes your goals now, and in the future, and does so in a tax-efficient manner and with minimal investment costs. It is our responsibility to build a financial plan and investment portfolio for you that will help ensure financial security for you and your family. 


Portfolio Solutions® is a long-term, strategic investment manager. 

We believe that diversification offers the best protection against risk and that investment markets are efficient over time. It does not make economic sense to attempt timing or outperforming investment markets. Rather, we seek broad-based exposure to desired asset classes by investing in low-cost index funds.  


After building a portfolio, we monitor it daily and rebalance when necessary in a cost effective, disciplined manner.

Some managers dismiss index investing (also referred to as passive investing) because they mistakenly see it as a “do nothing” approach. This could not be further from reality. There is no such thing as being completely passive when it comes to investing, especially when considering the work we perform: 

  • Forecasts of expected returns and risk factors must be created
  • Asset classes must be evaluated for inclusion
  • Efficient portfolios must be constructed
  • Index funds must be evaluated and selected 
  • A rebalancing strategy must be determined
  • The portfolio must be monitored and
  • Trades must be executed when required by the selected rebalancing strategy    

Where the “passive” part of passive, index investing comes into play is when it comes to reacting to the short-term ups and downs of the market. Portfolio Solutions® believes investment markets are efficient over the longer-term and that it does not make economic sense to bear the extra costs of active management in an attempt to benefit from short-term market inefficiencies or market timing. 

Markets can behave wildly and unpredictably in the short-term, but investment returns tend to behave much more predictably as the risk-return relationship plays out. All investments have a specific risk and return profile that they eventually follow. This concept is known as reversion to the mean. In practice, it is very difficult to time this reversion given how difficult it is to predict what could happen, or how markets would react to an event even if it were predicted and the timing was right. 

The S&P Dow Jones Indices publishes a robust, widely-referenced research piece known as The SPIVA® Scorecard that compares actively managed funds against their appropriate benchmarks on a semiannual basis. SPIVA® research has shown over 15 years of published data surveying more than 10,000 actively managed funds globally that active managers are not able to outperform passive managers over any given time period let alone deliver above-average returns consistently over multiple periods*. 


*Source: S&P Dow Jones Indices LLC


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