Frequently Asked Questions

What is FolioBeyond?

FolioBeyond is an investment management firm that uses automated asset allocation solutions based on proprietary computer programs called "algorithms" that leverage a robust institutional approach for portfolio construction and risk management.

What types of investments does FolioBeyond offer to individuals?

FolioBeyond's investment solutions for individuals utilize portfolios of Exchange Traded Funds, or "ETFs". ETFs are diversified portfolios of stocks and/or bonds that are designed to track defined indices of one kind or another, at a very low cost, in a tax-efficient structure. ETFs track specific geographies and sub-sectors of those geographies for Fixed Income along with distinctions for company size, earnings quality and other relative value measures for Equities.

What are FolioBeyond's fees?

FolioBeyond charges a flat annual fee of 0.50% of your portfolio investment balance for our asset management. There is an expense ratio that is taken directly out of the ETFs’ performance rather than billed to you. This cost is incurred by anyone who invests in these ETFs. The typical expense ratio for a moderate risk 60/40 Equities/Fixed Income blended portfolio is approximately 0.40%. We never charge any commissions, nor do we take any share of the profits or losses an investor earns.

How does FolioBeyond match investment strategy with my goals and objectives?

Managing your investment strategy is largely about managing risk while simultaneously maintaining a sufficient exposure to make it possible to meet your financial goals. If you take too little risk, there is a chance your investment returns will be inadequate to meet your goals. Conversely, if your portfolio has too much risk, you may find it difficult to maintain your strategy during periods of market volatility. FolioBeyond attempts to accurately assess your capacity to accept investment risk and balance that against your goals. Only then do we recommend a portfolio designed to satisfy that tradeoff.

How does FolioBeyond compare to other similar services?

FolioBeyond provides sophisticated and customizable products and a level of personal service that surpasses a typical automated or 'robo-advisory' firm’s offerings. FolioBeyond strategies are equally suitable to both institutional and individual investors. Current services in automated/robo-advisory space have major flaws:

• Limited number of fund products, driven by advisor's fee sharing arrangements.
• Unreliable methods for formulating and testing models as models are backward looking, are not based on enduring characteristics of markets, and fail to incorporate robust methodologies.
• Flaws in optimization process resulting from lack of product expertise and/or limited quantitative investment management experience can produce inappropriate asset allocations.
• Improper matching of risk targets with products types can result in historically biased models or fee driven recommendations
• Limited coverage of sub-asset classes can result in targeting novice investors with a sub-optimal offering of investment products.

How can FolioBeyond help me save on taxes?

By exclusively using ETFs, investors taxes can be reduced as compared to similar investments in mutual funds or trading individual stocks or bonds. ETFs’ tax efficiency is a function of their structure versus traditional mutual funds. This distinction is not relevant if the investor is a tax-deferred IRA or some other tax-advantaged vehicle.

How does FolioBeyond differ from a brokerage account?

Like a traditional brokerage account your account with FolioBeyond is in your name at one of two custodians, Charles Schwab or Interactive Brokers. Your ownership is not comingled with any other investors. By delegating the portfolio management to FolioBeyond, you are simply authorizing us to use our proprietary algorithms to determine the portfolio strategy and composition that is commensurate with your goals.

How do I open an account?

Opening an account with FolioBeyond is easy. Simply click the link below, provide us with your contact information and we can start the conversation. Click Here To Get Started