Dynamic risk budgeting through the core-satellite approach


A recent EDHEC-Risk Institute publication on risk control through dynamic core-satellite portfolios of exchange traded funds (ETFs) supported by Amundi1 reviewed a risk management method based on the dynamic core-satellite approach that we apply to the management of portfolios of ETFs.

The core-satellite approach divides the portfolio into a core component which fully replicates the investor’s designated benchmark and an outperformance-seeking component made up of one or more satellites that is

To continue reading...