How ETF Portfolios Are Like Fantasy Football

Do not forget about special teams in this area either. Alternative income and negative duration strategies can provide additional support if the market environment does not pan out as planned. Again, this is where the coach's role is difficult. Clients need to know the type of team an advisor builds, which includes the plan to start or sit certain players.

The ETF space possesses an increasing amount of offerings, and while some tickers may be more prominent than others, it remains imperative to know what resides underneath each strategy's hood. Transparency is key and will help illustrate if a player is sticking to their approach or making last minute changes to adapt to the competition. Actively managed ETFs can deliver access to top portfolio managers who use their discretion and expertise to seek alpha and better risk-adjusted returns. Due diligence combined with complementing different approaches could yield a similar outcome of a star running back led by an all-pro offensive line, or the breakout rookie receiver who leads the league in caught passes.

The best coaches understand that one cannot be both the player and the coach and still have an effective team. Just being the coach is not an easy endeavor. It is a continuous job with the responsibility of making active investment decisions while rotating exposure according to market conditions. Like a good fantasy football manager, and similar to how top institutions manage money, an advisor as the head coach who selects players among a deep and talented bench across different strategies, managers and investment styles provides their clients with the best opportunity to win the game.