Beta Due Diligence
What We Want
In our beta strategies the goal is to gain exposure to basic market returns – known as "Beta" – as efficiently as possible. For us, that means:
Investment products that have distinct and defined boundaries and invest only where and how we desire. This usually means replicating a specific market through an index, such as the S&P 500 index.
Investment products that are low-cost, highly liquid, and tax-efficient.
Investment products provided by reputable investment companies, such as Vanguard, BlackRock, StateStreet, Charles Schwab, and WisdomTree.
Investment products that are exchange-traded, which means they must also meet the listing standards of the NYSE or the NASDAQ.
How We Decide
The NS Capital Investment Committee (NSCIC) references its intellectual resources to construct a fundamental macro-perspective of the current investment landscape. This perspective provides a foundation for determining the appropriate asset classes and weightings for our beta strategies. We then validate our foundation by leveraging our network of third party index providers (Vanguard, BlackRock, StateStreet, Charles Schwab, Wisdom Tree, etc.) to stress-test our ideas and provide new insights.
This process is routinely executed to ensure our perspective is always ahead of the pack.