ETF Report Magazine features Index Strategy Advisors, Inc. Portfolio Risk Management Strategy

By | June 26th, 2013 02:06 AM EST | posted in CIO Letters, Conservative Strategy Insights, Custom Strategy Insights, ETF Education, Press Releases, Spotlight

The July 2013 edition of The Exchange-Traded Funds Report (ETFR) features James McDonald, Chief Executive Officer and Chief Investment Officer of Index Strategy Advisors, Inc. (ISA), and his firm’s core risk management strategy.  Through a Q&A interview format, McDonald explains how he employs the SPDR Barclays High Yield Bond ETF (Stock symbol “JNK”) to grow and protect investors portfolios.

Click here to read the July 2013 issue of ETF Report Magazine.


During the interview McDonald explained the dual merits of the SPDR Barclays High Yield Bond ETF, an $11.8 billion exchange-traded fund, as a strategic holding that provides strong income for client portfolios during calm or rising markets, and as a tactical source for funding prudent risk management during periods of market turbulence.


ISA portfolios are designed to help investors navigate significant and unstable movements in financial markets to obtain potentially increased returns. Portfolio results are achieved through disciplined risk management, situational awareness, global diversification and dynamic asset allocation.


As witnessed during the Credit Crisis of 2008-2009, the benefits of diversification may not always perform to expectations. One way to maintain an equity allocation favorable for growth while introducing a level of downside risk management is dynamic asset allocation. ISA Portfolios apply dynamic asset allocation strategies utilizing the JNK exchange traded fund through overlay risk management to minimize fees, maximize the capture of a rising market, and facilitate an efficient flight to safety when markets turn for the worse.


  • Why McDonald likes the SPDR Barclays High Yield Bond ETF (JNK)
  • How long the firm has held the position
  • What’s so great about JNK for ISA’s risk management strategy
  • Why use JNK instead of the iShares IBoxx $ High Yield Corporate bond ETF (HYG)
  • What are the downsides to JNK’s asset allocation
  • What are McDonald’s concerns about interest rates rising in the near term


Since 1999, the Exchange-Traded Funds Report (ETFR) has been known throughout the financial industry as the best source for news and data on exchange-traded funds. That tradition continues today, as ETFR’s experienced staff scours the globe to deliver complete coverage of one of the fastest-growing, most dynamic corners of the financial universe. With in-depth research and analysis, and the most complete data coverage in print, ETFR is, without question, the book of record in its field.

Click here to read the July 2013 issue of ETF Report Magazine.


The information on this web site is intended for U.S. residents only. The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer.

Sources: Index Strategy Advisors, Inc.. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of its stamped publication date, and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Index Strategy Advisors to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. The two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.