Who we are
Goodwin Investment Advisory (GIA) was started in response to the widespread need for unbiased independent investment advice - a place where the advisor is working in the best interest of the client. With this in mind GIA’s founder, Tim Goodwin, asked the question, “What is the best way to make the greatest return on an investment over the long term?” The results of his thorough research are evident in the index fund model portfolios GIA uses exclusively.
Core Values
- Integrity
- Excellence
- Teamwork
- Research
- Dedication
Our mission
To provide the greatest returns for the least amount of risk over a long period of time!
Currently, we believe the best way to accomplish our mission is to create highly diversified portfolios of Exchange Traded Funds. We recognize that many investment managers under-perform their market benchmarks on a regular basis. According to Morning Star, on average 80% of actively-managed mutual funds are outperformed by the S&P 500. The reasons for this are numerous: high expense ratios, high turnover and significant tax inefficiency are just a few. But there’s hope! Thanks to Exchange Traded Funds or ETFs that represent a direct investment in a specific index.
The S&P 500 is an index constructed and managed by Standard & Poor of the 500 largest stocks traded on US Exchanges. Before ETFs, the only way to invest directly into S&P 500 was through an Indexed Mutual Fund. These securities eliminated the high turnover problem and provided investors with average market returns, but investors still suffered from high expense ratios and tax inefficiency. Through ETFs the S&P 500 can be purchased for as little as a 0.09% expense ratio and are much more tax efficient because they are traded on exchanges, unlike Mutual Funds whose average expense ratio is 1.50%.
Our vision
To keep Investing Simplified.
The more complicated it gets the more expensive it is. The more expensive it gets, the less likely it is that your investments outperform the averages.
According to the Swiss Finance Institute Research Paper No. 08-18, in 2006 only 0.6% of the mutual funds they researched had a positive Alpha, net of fees. Alpha is a way to measure risk-adjusted returns. Therefore, after fees and adjusting for the extra risk the mutual fund manager may have took, only 0.6% of mutual funds provided value above their benchmark.
This makes things very complicated for mutual fund investors. This means that in 2006 only about 1 in 200 funds would provide above-benchmark returns once fees and risk were taken into account. We don’t like those odds and neither do our clients. Instead of having such a high risk for underperforming our benchmarks, we just buy the benchmarks through ETFs. This eliminates the guesswork and allows us to focus on the needs of our clients.