The efficient MANAGEMENT of client funds to closely match the performance of the V-Rank-A model portfolio.
We stress the term “management” here because we never take custody of your funds. Your account is established between you and our independent Custodian, Interactive Brokers. You control all deposits and withdrawals. Vetta Investments manages the investment aspect of your account. That is, we determine, in accordance with our account agreement, which securities and quantities are needed for your account and take the appropriate action to establish, maintain, and re-balance your portfolio on a periodic basis so that your account performance will closely match the performance of the V-Rank-A Model Portfolio.
In order to achieve efficient account management and to minimize trading commissions, Vetta Investments uses block trading wherever possible. Block trading allows us to trade client funds in a virtual, aggregate manner whenever possible, and to distribute assets and expenses fairly and in correct proportion to each participating client account. Block trading allows us to achieve the lowest commission rates possible for our clients because we are buying in bulk quantities and are avoiding minimum commission charges. Our goal in managing client accounts is to keep annual trading commissions to less than 0.5% of the clients account size. The trading costs you incur are always fully disclosed to you on your daily, monthly, and yearly account statements provided by our independent Custodian. In contrast to this, many mutual funds never fully disclose the trading costs incurred in the management of fund assets. Much has been written about this (learn more).