QuantStreet’s process provides a systematic approach to ETF selection, resulting in a highly-diversified portfolio. We invest in ETFs that track US stocks, international stocks, and government and corporate bonds.
A machine learning algorithm creates asset return forecasts based on market, fundamental, macroeconomic, and text data. The forecasted returns are then fed into a portfolio engine which generates the portfolio with the highest return at each level of risk. We choose a risk level based on your risk tolerance and our assessment of market and economic conditions, and then vet the model-generated portfolio to ensure it reflects important information about the markets and economy that may not have been captured by the model.