Core Viewpoint - The article emphasizes the advantages of using ETFs as a diversified investment tool in a complex market environment, highlighting their superior performance compared to individual stocks over various time frames [2][4]. Performance Analysis - As of August 13, 2023, 83% of individual stocks have risen, while nearly 95% of ETFs/LOFs have increased in value [2][3]. - The performance of ETFs over different periods shows a consistently higher percentage of rising ETFs compared to individual stocks: - 6 months: 77% for stocks vs. 90% for ETFs - 1 year: 93% for stocks vs. 81% for ETFs - 2 years: 65% for stocks vs. 74% for ETFs - 3 years: 59% for stocks vs. 66% for ETFs [3]. Investment Philosophy - The investment philosophy centers on "risk diversification and long-term stability," suitable for investors seeking asset preservation and moderate risk tolerance [6]. - The approach encourages systematic allocation to mitigate market volatility and emphasizes the importance of using professional quantitative tools [8][9]. Investment Strategy - The investment strategy employs a systematic framework that includes a data engine, risk prediction using neural networks, and risk parity for diversified and smooth returns [12]. - The model quantifies safety margins using "downside volatility," adjusting asset allocation based on historical data rather than traditional valuation methods [13]. Selection Criteria - The selection process for ETFs involves evaluating three key indicators: shrinkage in ETF size, liquidity decline, and tracking error expansion [15]. - The strategy focuses on a limited number of holdings, with no single position exceeding 20% of the portfolio [16]. Market Approach - The investment approach is primarily top-down, analyzing macroeconomic risks to determine asset class allocations before selecting specific ETFs [17]. - The model incorporates dynamic thresholds for risk management, triggering automatic adjustments based on volatility predictions [18]. Client Engagement - The service targets investors who are patient and understand the value of diversified investments, while also emphasizing the importance of risk management [22].