Client assets held in exchange-traded funds (“ETFs”) at TD Ameritrade, Inc. (“TD Ameritrade”), a brokerage subsidiary of TD Ameritrade Holding Corporation, have grown nearly 38 percent in the last year, while at the same time, demand for guidance among retail investors has continued to grow. To answer this demand, TD Ameritrade’s affiliated investment advisor, Amerivest Investment Management, LLC (“Amerivest”), has added five pre-constructed, professionally managed diversified portfolios, built solely from ETFs, to its current menu of managed portfolios.
“This offering meets the needs of these investors by offering objective guidance, diversification and simplicity.”
For investors who want to create cost-effective, diversified investment plans, but who admittedly need support in doing so, Amerivest Portfolios provides a unique combination of guidance and portfolio management along with objective fund recommendations.
Constructed based on the objective recommendations of independent, third-party expert Morningstar Associates, the portfolios are built to address a broad range of investment needs, based largely on an investor’s risk tolerance and time horizon for investing. Amerivest recommends a portfolio based on investor goals and risk profile and provides ongoing management. To provide an added layer of guidance, investors also get ongoing portfolio rebalancing from Amerivest.
To help investors pursue their unique goals, Amerivest offers five diversified asset allocation models – Conservative, Stable, Balanced, Growth and Aggressive Growth – each constructed with the investor’s choice of either mutual funds, or now, ETFs.
“We continue to see growth among investors who fall somewhere between those who want to manage their own portfolios and those who seek complete financial advice,” said Ram Subramaniam, head of products at TD Ameritrade. “This offering meets the needs of these investors by offering objective guidance, diversification and simplicity.”
“A fundamental principle of investing is proper diversification across asset classes to enhance the risk-return tradeoff in a portfolio,” said Peng Chen, president of Morningstar’s global investment management division. “We’re pleased to work with TD Ameritrade and Amerivest to lend our asset allocation and investment selection expertise to help their clients invest in well-constructed portfolios that they can hold for the long term.”
Amerivest Portfolios offers a cost-effective way to pursue long-term investment goals for investors looking for investment recommendations from objective, third-party experts.
For more information on Amerivest Portfolios, visit www.tdameritrade.com.
Before investing in any ETF, carefully consider the investment objectives, risks, charges, and expenses involved. For a prospectus containing this and other important information, please visit the TD Ameritrade Web site or contact a TD Ameritrade Client Services representative at 800-669-3900. Please read the prospectus carefully before investing.
ETFs are registered investment companies that trade on an exchange like a stock. Commission fees typically apply. Those who practice frequent dollar-cost averaging and active traders may generate trading costs that outweigh any cost benefit. Trading prices may not reflect the actual net asset value of the underlying securities. ETFs can entail risks similar to direct stock ownership and are subject to risks similar to those of their underlying securities, including, but not limited to, market, sector or industry risks, and those regarding short-selling and margin account maintenance.
Past performance of a security does not guarantee future results or success.
Diversification does not eliminate the risk of experiencing investment losses.
About TD Ameritrade Holding Corporation
TD Ameritrade Holding Corporation (NASDAQ:AMTD), through its brokerage1 and education2 subsidiaries, combines innovative trading technology, easy-to-use and understand trading tools, investment services, investor education and superior client service to create a market-leading financial services experience. Home to Kiplinger’s #1 online broker,3 the powerful thinkorswim trading technology, and the respected Investools investor education program, TD Ameritrade provides millions of retail investors, traders and independent registered investment advisors with the tools, service and support they need to help build confidence in today’s rapidly changing market environment. For more information and resources for journalists, please visit the TD Ameritrade newsroom at www.amtd.com.
2 Investools, Inc. is an education subsidiary of TD Ameritrade Holding Corporation. Investools does not provide financial advice and is not in the business of transacting trades. Investools, Inc. and TD Ameritrade, Inc. are separate but affiliated companies that are not responsible for each other’s services or policies.
3 TD Ameritrade was ranked #1 and received an overall score of 5 stars (tied for first place with one other broker), in the Kiplinger’s Online Broker Ratings, Kiplinger’s Personal Finance, 02/2011. Fourteen brokers were rated in the categories: Costs, Web site usability, Investment choices, Customer service, and Research and tools.
About Amerivest Investment Management, LLC
Amerivest is an investment advisory service of Amerivest Investment Management, LLC, an SEC-registered investment advisor. Brokerage services provided by TD Ameritrade, Inc. TD Ameritrade, Inc. and Amerivest Investment Management, LLC are both wholly owned subsidiaries of TD Ameritrade Holding Corporation. Amerivest is a trademark of TD Ameritrade IP Company, Inc. Amerivest provides non-discretionary and discretionary advisory services for a fee. Risks applicable to any portfolio are those associated with its underlying securities. For more information, please see the Amerivest Disclosure Brochure (ADV Part II).
About Morningstar Associates, LLC
A unit of Morningstar Investment Management (a division of Morningstar, Inc.), Morningstar Associates, LLC is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar Associates is a premier provider of independent investment management and consulting services to institutions. It combines world-class resources, rigorous investment processes, and industry and product expertise to design innovative and custom solutions that best serve clients and investors. Morningstar Associates provides investment advisory services on nearly $61 billion as of December 31, 2010.
Morningstar Associates, LLC (“Morningstar Associates”) is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar Associates provides consulting services to Amerivest Investment Management, LLC (“Amerivest”) but is not acting in the capacity of advisor to individual investors. Morningstar Associates provides recommendations to Amerivest regarding asset allocation targets and selection of securities appropriate for the Amerivest portfolios; however, Amerivest retains the discretion to accept, modify or reject Morningstar Associates’ recommendations. Morningstar Associates selects securities for the Amerivest portfolios from the universe of investments made available through TD Ameritrade. Asset Allocation target allocations are subject to change without notice. Morningstar Associates establishes the allocations using its proprietary asset classifications. If alternative classification methods are used, the allocations may not meet the asset allocation targets. The Morningstar name and logo are registered marks of Morningstar, Inc. Morningstar Associates is not affiliated with Amerivest or TD Ameritrade.
Neither Morningstar Associates nor Morningstar, Inc. is affiliated with TD Ameritrade and its affiliates. Morningstar Associates does not act in a capacity of an advisor to individual investors.