ETFolios, North America’s first Web-based service offering clients a separately managed investment portfolio of exchange traded funds tailored specifically to their needs, is being launched by Guardian Capital Advisors Inc., the private client investment advisory subsidiary of Guardian Capital Group.

Clients benefit from the performance of broad indices or specific sectors of the market by using ETFs. Use of “indexed” market participation represents from 25% to 40% of assets for a large number of North American pension plans that have the resources to develop sophisticated asset allocation strategies and to source the right investment vehicles.

“We think the individual investor deserves the same opportunity for efficiency and cost-effectiveness enjoyed by these large institutions,” says Srikanth Iyer, manager of portfolio engineering at GCA.

ETFolios are separately managed investment portfolios of ETFs. They are actively managed and accessible by clients via the Internet. Performance can be tracked daily.

“We’ve researched the myriad of ETFs available and, based on rigorous, unbiased testing and evaluation, have identified those that should provide the best solutions for clients,” Iyer states.

“We will add new vehicles as market opportunities develop, but will focus on quality ETFs like iUnits and iShares from Barclays Global Investors and other knowledgeable providers. ETFolios also enable tax management strategies for taxable portfolios.”

“We have designed ETFolios to have more consistent performance and to be more tax efficient than mutual funds and ‘wrap’ products,” continues Iyer.

“Individuals must deal with taxes and that is a value-added feature of ETFolios. By monitoring and capturing losses and matching gains when possible, ETFolios can minimize taxes and allow portfolios to keep more capital working for clients.”

GCA says it stands ready to work with advisors which are prepared to train with the company including attendance at an ETFolios seminar.