Motif Investing Launches Fixed-Income Products, Simplifies Online Bond ETF Investing
Web Innovator Broadens Offerings to Let Retail Investors Build Affordable, Customized Fixed-Income Portfolios
SAN MATEO, Calif., Aug. 17, 2012 /PRNewswire/ -- Motif Investing, the company that pioneered ideas-based stock investing, today expanded its product offerings by announcing 10 new fixed-income motifs--specialized portfolios of bond ETFs (exchange-traded funds) tied to certain macro-economic trends. These new motifs offer an easy and economical way for investors to add fixed income to their holdings. By adding fixed-income products to its lineup, Motif enables investors to manage their entire portfolio in an intuitive way.
"In today's volatile markets, investors are increasing their allocation to fixed income," said Hardeep Walia, Motif's chief executive. "We now offer customers a chance to invest in motifs based on bond ETFs in the same, intuitive way they invest in equity-based motifs on the Motif site, tracking real-world trends."
Theme-based fixed-income investing
Motif's fixed-income offerings are created in the same way stock motifs are built: the company's investment team searches for real-world ideas and trends that can be turned into investment opportunities. Stock motifs--customizable portfolios of up to 30 stocks--are built around wide-ranging, everyday concepts like junk foods, electronic payments or income inequality. Fixed-income motifs track more fundamental economic topics, like inflation, deflation, and AMT (alternative minimum tax). Fixed-income motifs also include up to 30 securities, but they are constructed from bond ETFs.
Motif enables investors to customize their fixed-income motifs, just as they can with stock motifs. An individual can even customize their own fixed-income "ladder" within a motif, adjusting maturities and ETF weights to meet their own risk-return needs.
An entire fixed-income motif can be bought for $9.95. There is a $250 minimum investment per motif but there are no minimums to open an account at this time.
New Fixed-Income Offerings: Inflation, America, AMT-Free
Fixed-income investing has traditionally been extremely challenging for individual investors, especially when buying individual bonds. But Motif's new offerings eliminate much of the confusion and complexity. The new motifs include:
-- Inflation: includes bond ETFs that hold TIPS (Treasury Inflation
Protected Securities) and similar foreign government-issued bonds
designed to hedge against inflation. The average 1-year return of the
ETFs in this motif is 7.42%.
-- American Bonds: includes US government and corporate bond ETFs that
provide a safe haven against stock market volatility. The average 1-year
return of the ETFs in this motif is 7.93%.
-- AMT-Free Munis: designed to help investors subject to the alternative
minimum tax capture some tax-free interest income. The average 1-year
return of the ETFs in this motif is 8.16%.
"It is very challenging to achieve your targeted risk-return from fixed income on your own and can be even more challenging to understand the specific investments. Our fixed-income motifs make it easy and more affordable to invest in where you think the economy is going and adjust to meet your own income needs," explained Mr. Walia. "Using a collection of bond ETFs simplifies the process and lowers costs -- huge benefits for our customers."
Motif Investing is an online broker that lets you invest in ideas. The company, based in Silicon Valley, is changing the face of online investing through an innovative new platform that allows individuals to invest in stock and bond portfolios based around everyday ideas and broad economic trends--and share those ideas with friends. Motif is a registered broker-dealer and a member of FINRA. The company's investors include Foundation Capital, Ignition Partners and Norwest Venture Partners. Learn more at http://www.motifinvesting.com.
Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Motif Investing at 855-586-6843. Please read the prospectus carefully before investing.
Investing in securities involves risk you should be aware of prior to making an investment decision. An investment in individual stocks, or a collection of stocks focused on a particular theme or idea, such as a motif, may be subject to increased risk of price fluctuation over more diversified holdings due to adverse developments which can affect a particular industry or sector.
Return data is provided for informational purposes only and based on past results taken for the year ending August 7, 2012, and is not intended to represent returns an investor could expect to achieve. The returns reflect the average return of all ETFs held in the motif. Stated returns of individual motifs do not take into consideration certain fees and/or commissions, corporate actions, or other activities that can affect the return an investor could expect. Please refer to FAQs at http://www.motifinvesting.com for more information regarding the Motif Investing commission structure.
CONTACT:
Marisa Lam
GMK Communications for Motif
marisa@gmkcommunications.com