[Source: Robert Credaro, Macquarie Investment Management ³ ]

By evaluating each of these performance attributes individually and presenting recommendations to clients, we can empower them to trade off less desirable attributes for those that may be more important to them .

For example, if we think about using the ETF as the core beta generator for the investment portfolio, we may be unconcerned that it does not provide the potential for excess return – this is the job for the alpha generating satellites in the portfolio. The ETF is superior on other key attributes, such as taxes and fees (the...