Asset allocation is closely related to everyone. Standard & Poor's Company made a family asset allocation chart through the investigation of tens of thousands of families. This scheme is recognized as a robust asset allocation scheme, which is known as "1234". "1" means that 10% is used for "money to be spent". The money is used to protect the short-term expenses of the family, usually 3-6 months' living expenses. "2" means that 20% is used for "life-saving money", that is, accident and serious illness insurance, which is used for emergency use through leverage. "3" means that 30% is used to "make money", that is, to obtain a certain high income through investment, it also needs a certain risk tolerance. "4" means that 40% is used for "capital preservation", and this part of the money is mainly used for pension and children's education. The principal of this money must not be eroded and the income is stable. Will continue to accumulate through the compound interest effect to ensure long-term use.

As a practitioner in the investment circle, readers will definitely ask how to allocate the 30% of the money. In academic research and financial practice, experts have designed many allocation models, including 60/40 model, mean variance model, BL model and popular risk parity model in recent years. In order to realize these models, it involves various assets, such as stocks, bonds and commodities. At the stock level, asset allocation still plays an important role. Overseas research shows that asset allocation explains 90% of the fluctuation of asset returns. The classic asset allocation method has the idea of "core-satellite".

The whole portfolio is divided into "core" and "satellite". The so-called "core assets" are the relatively large part of the investment portfolio, with the aim of obtaining relatively stable income. The proportion of "satellite assets" in the portfolio is relatively small, and it has greater flexibility to strive for high returns, thus improving the risk-return ratio of the entire portfolio. Whether it is "core" or "satellite", index funds are a natural part of asset allocation. As the "core", index funds have the characteristics of high transparency, strong representativeness and large capital capacity. In contrast, the performance of active funds is unstable, with the characteristics of style drift, and fund managers often change. These are not conducive to investors' grasp of capital risks and benefits. As a "satellite", a kind of intelligent beta assets with high volatility, high elasticity and obvious excess return can be used as the first choice tool to meet investors' requirements for risk return. Therefore, index funds are naturally the preferred tool for asset allocation.

Harvest Super ETF is an excellent tool for asset allocation. It is found that investors can obtain Alpha through in-depth and active research and analysis in China. Alpha acquisition method is based on thought-driven and cognitive logic, such as Buffett's value investment method, such as growth investment method. Therefore, in today's emphasis on asset allocation, the underlying assets of asset allocation should also be adapted and driven by ideas. The concept-driven Smart beta can obtain a better risk-return ratio than the traditional market value-weighted index. Harvest Super ETF is a systematic and transparent product driven by Smart beta, which operates in the form of ETF. Super ETF has the characteristics of super-cheap, super-convenient, super-rich, super-transparent, super-standard and super-intelligent, and it is the underlying asset allocation tool suitable for China investors in China market.

This article is from Beta Story.

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