Have you ever had that experience where you walk into a meeting and it feels like everyone knows more than you do?  Investing often feels that way because there is an entire industry of professionals doing research, analysis, and using powerful algorithms to try to make better investments.  That’s why Evati uses powerful algorithms and portfolio models designed by industry professionals to put you on a level playing field.

How do we do it?

We start by understanding you.  That’s why we ask those important questions when you create your account, including how much you want to save for your first goal and when you think you’ll need it.

Why is our process better?

We use a combination of systems, people, and deep experience to chart a path towards meeting your goals.

  • For ultra-short-term goals (less than 3 months), we know the lowest risk path is a good idea, so we put money into an interest-bearing cash account that earns 6 timesthe interest of a typical checking account.
  • For slightly longer-term investments, we start using U.S Treasury Bond focused Exchange Traded Funds (ETFs) that are low volatility (less ups and downs) with a much higher expected rate of return than a typical bank savings or checking account.
  • For Investments with a goal of a year or more, we start using a balanced set of ETFs that focus on reducing market volatility as much as possible with a mix of stocks and bonds for a higher rate of return.
  • Depending on your particular situation and risk tolerance, we may recommend a conservative set of ETFs, an aggressive set of ETFs, or a portfolio balanced between the two.

What is an ETF and why does Evati use them?

ETFs are baskets of different types of investments that are grouped together into a single marketable security that is then traded on an exchange in the same way that investors buy or sell individual stocks or bonds.  ETFs have become incredibly popular due to their efficiency, diversification, simplicity, and broad focus.  The biggest benefit to investors of ETFs is that with a very small amount of money you can gain exposure to a well-diversified portfolio of investments. Due to their simplicity and effectiveness, investors continue to be drawn to ETFs and have invested over $3.7 trillion in ETFs as of February of 2019, according to the Investment Company Institute.

How do we choose the right ETFs (Exchange Traded Funds)?

Behind Evati’s simple and intuitive app are powerful financial models and algorithms.  Evati employs those tools, through its investment advisory subsidiary Evati Advisory Services, LLC, to determine what kinds of investments are appropriate for particular investors.  Evati Advisory then directs those investments into diversified model portfolios designed by Morningstar Investment Management LLC, a leading provider of discretionary investment management and advisory services and a subsidiary of Morningstar, Inc. Morningstar Investment Management seeks to build and manage model portfolios using a disciplined investment process to create strategies that incorporate a wide variety of investment objectives, and the portfolios are regularly monitored to help ensure they remain well-positioned and risk aware as the market changes.

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