Core-satellite

The core-satellite approach splits a portfolio into two layers. The core is a broad, low-cost base holding, such as a world ETF, and makes up the largest part of the assets.

Around this core sit smaller, targeted additions known as satellites. These may be individual themes, regions or single securities, used to set deliberate accents.

In this way the approach combines the stability and low cost of a broadly diversified core with limited, active positioning through the satellites. The satellites are kept deliberately small so that the broad core sets the overall direction.