Download the SmartMix Fact Sheet

SmartMix® is state-of-the-art client allocation strategy designed to keep client accounts focused on the top performing investment strategies and/or asset classes that Heritage offers at all times.

Unlike the traditional “market portfolio theory” approach, the SmartMix® strategy incorporates multiple investment strategies, multiple managers, multiple methodologies as well as multiple asset classes.

Traditionally, a diversified portfolio has been split among U.S. stocks, foreign stocks, bonds, and cash. More recently, the concept has been expanded to include additional asset classes such as real estate, gold, commodities, emerging markets, and foreign bonds.

However, since the turn of the century, investors have learned that traditional diversification strategies did little to protect them from the two brutal bear markets that occurred within a nine-year span. As such, we believe that classic asset allocation alone falls woefully short of investors’ needs.

The answer is the SmartMix® strategy. Every two weeks, the SmartMix® system algorithmically selects the top performing investment management strategies and/or asset classes available to be utilized within client portfolios.

You Can "Leave The Driving To Us"

Having trouble deciding which of the Heritage programs is best? SmartMix® is for you!

SmartMix® takes the worry out of trying to decide which investment programs or asset classes to own and perhaps more importantly, when to make changes to your holdings. In short, our intuitive SmartMix® allocation system takes care of this for you, month in and month out. 

We created this series in order to make some client decisions easier. SmartMix® keeps client accounts positioned in our top performing strategies and/or asset classes without the hassle of transfers, paperwork, or making "the wrong choice" when it comes to choosing investment management programs.

Instead, clients can simply "leave the driving to us." Every two weeks, the SmartMix® system allocates client assets to the top rated programs and/or asset classes available to the program.

SmartMix® Adapts To Changing Market Environments

Besides keeping your account allocated to the top performing programs or asset classes, SmartMix® is designed to adapt to changing market environments.

It is vital to recognize that all bull markets eventually morph into bear markets (and vice versa). As such, the same aggressive growth approach that can produce strong returns during bullish market environments can be very difficult to live with during bearish markets. Therefore, we believe it is critical for investment strategies to be able to adapt to changing conditions.

The SmartMix® programs are designed to do just that. When conditions change, the SmartMix® systems change the allocations to investment strategies and/or asset classes. Automatically. Unemotionally.  No more worrying about whether or not it is time to take action. SmartMix® does it for you. 

Knowing that allocations to asset classes and investment strategies will automatically adjust when a bull market suddenly becomes a bear market allows investors to relax and "buy and hold" their SmartMix® program for the long-term.

Risk Management and Volatility "Budgets" Are Built In

Risk management strategies are built into every program Heritage offers. We firmly believe that if given a choice, few investors would intentionally remain fully invested during bear market environments. While there are no guarantees in investing, our goal is to defend against the severe losses that can occur during extended market declines.

However, SmartMix® takes risk management one step further. One of the truly unique features of the SmartMix® approach is that risk and volatility “budgets” are built into the strategies. For example, if a Heritage program or asset class suddenly exceeds its predetermined risk or volatility level, it is quickly and unemotionally eliminated from the allocation mix.

Thus, investors can take comfort in the knowledge that the Heritage SmartMix® programs are designed to manage risk at both the individual strategy and the overall portfolio levels.

SmartMix® Has Flexibility To Go Where The Performance Is

Another unique feature to the SmartMix® programs is the flexibility to go where the performance is. The intent is to ensure that the SmartMix® programs have access to, as well as the flexibility to, invest in whatever is working best in the markets.

For example, if foreign markets are the best performers in a given year, then the SmartMix® system is designed to allocate at least a portion of client assets to Heritage's Global, Global Growth & Income, and/or Momentum ETF strategy. If bonds are the place to be then SmartMix® is likely to position accounts in Heritage's High Yield Bond, Focus Income or individual bond market ETFs. And if the U.S. stock market is the dominant performer, the SmartMix® programs can be expected to be invested in the Active Risk Manager, the Insider Buying Strategy, and/or U.S. stock market ETFs.

Unlike traditional blending strategies for investment programs, SmartMix® has the ability to own asset classes in addition to - or in place of - Heritage's active management programs.

SmartMix® Goes Beyond Traditional Asset Allocation

The SmartMix® program goes beyond the popular asset allocation approaches. In addition to diversification by asset class, SmartMix® has the ability to diversify client accounts by manager, strategy, and methodology.

It is important to understand that no investment strategy can outperform in all market environments. Thus, when the SmartMix® systems determine that asset classes such as stocks, bonds, foreign stocks, or high yield bonds are outperforming the actively managed investment programs, an allocation is made directly to the asset classes themselves.

The investment management programs and asset classes available within the SmartMix® programs include:

• Active Risk Manager (Main, Aggressive and Growth)
• Insider Buying Strategy
• Global Leadership
• Global Growth & Income
• TILT
• Momentum ETF
• Active Swing
• Focus High Yield
• Focus Income
• S&P 500 (SPY)
• Dividend Payer Index (DVY)
• Russell 2000 (IWM)
• High Yield Bond (HYG)
• 7-10 Year Gov't Bond (IEF)
• 20+ Year Gov't Bond (TLT)

Thus, every two weeks, the SmartMix® system has more than 15 strategies and/or asset classes to choose from.

Two SmartMix® Program Offerings

Because no two investors are alike with regard to investment objectives and risk tolerances, there are two SmartMix® Programs available:

• Growth
• Maximum Capital Appreciation

The SmartMix® Maximum Capital Appreciation program will allocate client assets to the top three Heritage programs and/or asset classes.

The SmartMix® Growth program takes a more conservative approach by allocating client assets among five Heritage programs and/or asset classes, and utilizing a lower risk/volatility budgeting level.

Take A Look 

Check out the SmartMix Maximum Capital Appreciation Hypothetical Illustration here:

SmartMix Maximum Capital Appreciation PDF

Brokerage Offerings and Account Minimum

The SmartMix® series is currently offered at TD Ameritrade, Fidelity and Trust Company of America

Minimum Account Size: $50,000

Performance Results: Contact Heritage or give us a call at (630) 250-4700

Contact A Heritage Representative To Get Started

Please see disclosures regarding the risks of investing as well as additional disclosure regarding the risks of using leveraged and inverse ETFs in our Disclosure page