Risk categories and real money development ETF portfolio
The chart shows the real money development of a SAMT AG portfolio, which was launched in November 2016. The exact development of the portfolio can be tracked in the chart (hover over the chart to see the performance numbers) and is updated on a daily base with an app. rolling 30 hours delay.
SAMT AG offers a total of 20 risk classes and has developed its own portfolio theory, which is used to develop a diversified portfolio based on a Markowitz portfolio theory. Portfolio optimization is carried out using proprietary optimization algorithms.
These mathematical optimization algorithms automatically search for the best combination of ETFs according to risk numbers and yield. Other criteria for the ETF selection are physical replication, trading volume (liquidity), sufficient history and low cost.
Risk management takes place by defining a risk class and re-investing the disbursements.
A risk-free investment in bonds results in a negative return. Compared to a risk-free interest rate of zero return, it can be assumed that the SAMT AG portfolio will yield a long-term return of more than 8% per annum (inflation adjusted return).