The Discipline Fund ETF is a low fee, tax efficient globally diversified fund of funds designed to help you behave better and stay the course.
In a 2018 interview investment legend John Bogle explained why it made sense to rebalance a portfolio in a countercyclical manner to control for behavioral risks and help stay the course. He explained, for example, that you might rebalance 65/35 stocks/bonds to 50/50 stocks/bonds if market risks appeared elevated. The Discipline Fund takes this concept and applies it to a 50/50 benchmark to try to help control the risks in the portfolio. It not only makes intuitive sense, but as Bogle says, it makes perfect financial and economic sense.
That’s what the Discipline Fund ETF is trying to achieve in essence. It is a long-term focused, highly diversified, low fee, tax efficient fund that builds a systematically rebalancing global stock/bond allocation around a 50/50 benchmark with the goal of helping you behave better and stay the course by trying to be overweight stocks when they are less risky and underweight stocks when they are more risky.
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1 – This fee is substantially lower than the average broad world allocation fund which has a fee of 0.81% according to Morningstar.
Further, according to Research Affiliates, the estimated tax liability of a mutual fund when compared to an ETF is 0.8% when adjusted for dividends.
The Fund’s investment adviser has contractually agreed to waive all or a portion of its management fee for the Fund until at least one year from the date of the Fund’s commencement of operations to the extent necessary to offset all Acquired Fund Fees and Expenses.