Fund-of-ETFs based on Lipper indexes

Hennion & Walsh Inc. today introduced fund-of-ETFs mutual funds based on indexes created by Lipper Inc. The SmartGrowth Lipper Funds include Optimal Conservative, Optimal Moderate and Optimal Growth indexes, with each one closely tracking one of New York-based Lipper's proprietary Optimal Target Risk Indexes. The indexes are chosen from all broad-based, sector and industry-specific domestic equity, international equity, fixed income and commodity asset classes. Lipper then determines the optimal ETF allocations for each index with the goal of maximizing return and mitigating risk. The indexes are rebalanced on a quarterly basis and are made up of between three and seven ETFs, with non-repeating securities and a low degree of correlation. The funds require a minimum initial investment of $1,000 and have an expense ratio of 1.5%. "We are filling a void in the ETF marketplace for the individual investor," said Bill Walsh, founder and president of Hennion & Walsh of Parsippany, N.J. "It is confusing for advisers and clients by creating index and funds to track them. We are simplifying investing in the ETF marketplace." Hennion & Walsh manages 1,500 accounts with $170 million in assets under management.