Glossary

Tactical Strategies-Tactical strategies are shorter term in nature (Less than 1 year).  They attempt to capitalize on shorter trends and tend to offer superior risk management.

Strategic Strategies- Strategic strategies are longer in term by nature (1 year or more).  They attempt to capitalize on long term trends and typically do not offer as much risk management to the investor.

ESG Investing- A set of standards used to judge how well a company performs on Environmental, Social & Corporate governance measures.  Screening for ESG measures can ensure that investors only investing companies that share their values.

Smart Beta-Smart beta strategies attempt to outperform the market by capturing investment factors or market inefficiencies. Well known examples of inefficiencies are: quality, value, size and momentum. Over long periods of time these characteristics tend to outperform the market indexes.

Sharpe Ratio- The Sharpe ratio measures a portfolio’s past performance—or expected future performance—in relation to how "Risky" the portfolio has been. A high Sharpe ratio indicates high returns and or lower risk when compared to similar portfolios.

Maximum Drawdown- Maximum drawdown measures the biggest drop in value of a portfolio from a peak level to a subsequent low level.  Can be seen as the maximum potential loss of value in a portfolio, but does not indicate weather the investor bought or sold any particular level.

Tax loss harvesting- The practice of selling investments when they are below their cost in order to lock in the loss and then buy a substitute investment. Regular tax loss harvesting is thought to increase total after tax return by reducing the taxes paid in taxable investing accounts.