Through Sifter Fund, you get global diversification into 30 different quality companies whose business has been comprehensively evaluated and the portfolio is constantly re-evaluated.
Investing in Sifter gives you a whole team to manage the stock portfolio.
If you compare Sifter with a quality ETF, the most significant difference in the investment policy is related to the amount of analysis. ETFs, therefore, follow indices, which means they lack a qualitative analysis of the quality of the company’s business model, money-making ability, and future visions.
Diversifying to global low-cost index funds has always worked in the long run. After the fees, this ETF strategy has generated approximately an average return of 8 % per year. If you had invested 100 000 euros, it would have grown to 1 000 000 euros in 30 years. Inflation has, of course, reduced real profits.
The average return of Sifter Fund R-class has been approximately 9,6 % after all the expenses (19.6.2003-31.12.2021). Past performance is no indication of future performance. Still, Sifter is an example that an actively managed portfolio, qualitative analyzing, and necessary allocation changes can generate an excess return to investors.