PT - JOURNAL ARTICLE AU - Andrew Walsh TI - Core–Satellite Strategies: <em>Combining Stability and Opportunity in an ETF Portfolio</em> AID - 10.3905/jii.2013.4.3.050 DP - 2013 Nov 30 TA - The Journal of Index Investing PG - 50--53 VI - 4 IP - 3 4099 - https://pm-research.com/content/4/3/50.short 4100 - https://pm-research.com/content/4/3/50.full AB - So-called core-satellite strategies have gained popularity among asset managers seeking to combine strict risk control with opportunities to create alpha through active management. Traditionally core satellite portfolios consist of a passively managed core around which the satellites—usually actively managed vehicles—“revolve.” The rationale behind this is that the core of the portfolio should be consistent with investors’ long-term aims, enabling them to catch asset class risk premiums in efficient markets in a controlled and cost-effective way. The satellites are meant to generate alpha in inefficient market segments.TOPICS: Portfolio construction, exchange-traded funds and applications