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Core + More Simulator

Does your portfolio need an Alternative Solution?

While diversification does not guarantee against a loss, it is an important component of reaching long-term financial goals while attempting to mitigate risk. Move the slider below to change the allocation to alternatives in a hypothetical portfolio. As the slider arrow is moved to the right, the allocation to alternative assets increases. You should notice as the allocation of alternatives is increased, the standard deviation (risk measure) of the portfolio often decreases and the return of the portfolio often increases.

                             

 

 

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Performance data quoted represents past results and is not indicative of the performance of any Virtus Funds. Past performance is no guarantee of future results and current performance may be higher or lower than performance shown.   

Diversification does not guarantee against a loss and there is no guarantee that a diversified portfolio will outperform a non-diversified portfolio.

  • Stocks are represented by the S&P 500 Index.
  • Bonds are represented by the Barclays Aggregate Bond Index.

The Alternatives Diversifier Composite consists of: Diversified Trends Index (15%), UBS Global Investors (Real Estate) Index (20%), Global Infrastructure, represented by the MSCI World Infrastructure Sector Capped Index (since 9/1/2008) (15%), S&P North American Natural Resources Sector Index (10%), Deutsche Bank Liquid Commodity Index (15%), Deutsche Bank G10 Currency Harvest Index (15%) and Credit Suisse Leveraged Loan Index (10%). Prior to 3/1/2012 the composite consisted of: HFRX Equity Market Neutral Index (20%), UBS Global Investors (Real Estate) Index (20%), Global Infrastructure, represented by the MSCI World Infrastructure Sector Capped Index (since 9/1/2008) (15%), S&P North American Natural Resources Sector Index (10%), Deutsche Bank Liquid Commodity Index (15%), Deutsche Bank G10 Currency Harvest Index (10%) and Credit Suisse Leveraged Loan Index (10%). Prior to 9/1/2008, the Global Infrastructure component was represented by a mix of MSCI US Utilities Index (65%), MSCI World Telecom Services Index (20%) and MSCI World ex US Utilities Index (15%). The indices are unmanaged and not available for direct investment.

Risk Disclosure for Alternative Strategies: The alternative strategies and asset classes mentioned are not suitable for all investors. Many alternative strategies use sophisticated and aggressive investment techniques such as leveraging, short selling and derivatives. The more you invest in leveraged instruments, the more the leverage will magnify any gains or losses on those instruments.

The use of short selling involves increased risks and costs. You risk paying more for a security than you received from its sale.

Theoretically, stocks sold short have the risk of unlimited losses. The use of derivatives such as futures, options and swap agreements may expose an investment to additional risks that it would not be subject to if you invested directly in the securities underlying those derivatives.

Additionally, certain alternative strategies tied to hard assets such as commodities, currencies and real estate, may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, such as droughts, floods, weather, livestock disease, embargoes, tariffs and international economic, political, and regulatory developments.

No investment strategy can guarantee a return in a declining market. Additionally, an investor could lose all or a substantial amount of their investment.

Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic and market risk.

Investing in the securities of small and mid-sized companies involves greater risks and price volatility than larger, more established companies.

Definitions: Indexes are unmanaged and not available for direct investment. The S&P 500 ® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested.  

The Barclays Capital U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis.

HFRX Equity Market Neutral Index measures funds that strive to generate consistent returns in both up and down markets by selecting positions with a total net exposure of zero. Funds are weighted within the index based on quantitative methodology by Hedge Fund Research. Performance prior to April 2003 is represented by the HFRI Equity Market Neutral Index.

UBS Global Investors Index is a subset of the UBS Global Real Estate Index. It measures the global investable universe of publicly traded real estate securities that derive 70% or more of total revenue from rental income.

Global Infrastructure is represented by a composite index consisting of a blend of 65% MSCI US/Utilities Index, 20% MSCI World Telecom Services Index, and 15% MSCI World ex US/Utilities Index from December 1994 through August 2008 and the MSCI World Infrastructure Sector Capped Index since September 2008, which is designed to mirror the investable universe of global listed infrastructure companies. 

MSCI US/Utilities Index: a market capitalization-weighted index that monitors the performance of utility stocks from the United States.

MSCI World Infrastructure Sector Capped Index: a market capitalization weighted index that measures performance of global infrastructure companies by capturing broad and diversified opportunities across telecommunication, utilities, energy, transportation and social infrastructure sectors. The telecommunication infrastructure and utilities sector each represent one-third of the index weight, while energy, transportation and social infrastructure sectors have a combined weight of the remaining one-third of the index.

MSCI World Telecom Services Index: a free float-adjusted market capitalization index that measures telecom-related stocks from developed-market economies around the world.

MSCI World ex US/Utilities Index is a market capitalization-weighted index that monitors the performance of utility stocks from around the world excluding the United States.

S&P North American Natural Resources Sector Index is a modified-capitalization-weighted index of companies involved in the following categories: extractive industries, energy companies, owners and operators of of timber tracts, forestry services, producers of pulp and paper, and owners of plantations.

Deutsche Bank Liquid Commodity Index (DBLCI)is a rules-based index based on six liquid futures contracts on Light Sweet Crude Oil, Heating Oil, Gold, Aluminum, Corn and Wheat.

Deutsche Bank G10 Currency Future Harvest (DBCFH) Index, which reflects the return from investing long in currency futures for currencies with relatively high yielding interest rates and short in currency futures for currencies with relatively low yielding interest rates. This is designed to exploit the trend that currencies trading with a forward discount tend to, on average, perform better than those trading at a forward premium. Chicago Mercantile Exchange FX Futures are used in the index calculation. FX Futures based on the G10 currencies vs. USD are eligible for selection in DBCFH. The G10 currencies are USD, EUR, JPY, CAD, CHF, GBP, AUD, NZD, NOK, SEK. The index is published on a daily basis on New York business days.

Credit Suisse Leveraged Loan Index is designed to mirror the investable universe of the U.S. dollar denominated leveraged loan market.

Standard Deviation measures variability of returns around the average return for an investment.