INVESTMENT PROCESS
Capital Preservation

Risk-Based Asset Allocation

Core Index Strategy

Satellite Active Strategy


Servant Financial's overall investment strategy looks for broad diversification, low transaction costs, low portfolio turnover and tax efficiency.

Very often investment expenses can inevitably eat into the average investor's portfolio returns. Servant Financial is committed to enhancing your returns by leveraging our relationship with discount brokerage services, avoiding excessive trading in accounts by employing primarily a buy and hold strategy; and utilizing low-cost exchange traded funds (ETFs) and no-load mutual funds with low expense ratios as a core investment strategy.

ETFs that track a specific market index, such as the Standard and Poor's 500 index, provide a great combination of diversification, low cost and performance. When it comes to performance, most actively managed mutual funds have underperformed the relevant market index.



In addition to market tracking performance, ETFs provide an even more cost-effective and convenient alternative to traditional mutual fund index investing. ETFs are portfolios of stocks and bonds that track a specific market index and trade like company stocks. Unlike traditional mutual funds, ETFs can be bought and sold on an exchange throughout the trading day. ETFs are the most recent innovation in the evolution of investment management. Like the previous developments in mutual funds and discount brokerage services, ETFs result from the application of the latest advancements in information technology and processing capability to the enormous benefit of the individual investor. Not surprisingly, ETFs were one of the fastest growing investment vehicles in 2004. Learn more about the Advantages of Investing in ETFs.

Servant Financial will also employ value-based criteria in the fund selection process. There are a number of no-load funds and ETFs that incorporate intrinsic value concepts and value-driven measurements into their security selections processes.

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Did You Know?
ETFs were one of the fastest growing investment vehicles in 2004.