XTF Advisors to Launch at 2005 World ETF Summit

XTF Advisors to Launch at 2005 World ETF Summit

Company to Introduce Powerful New ETF-Based Investment Products and Services for Financial Professionals

NEW YORK, Sept. 13 /PRNewswire/ -- XTF Advisors, a company focused exclusively on providing ETF-based products and services, launched today at the 2005 World ETF Summit. At the Summit, XTF also introduced its three main offerings: separately managed accounts, asset allocation strategies and education.

XTF's flagship offering is a unique, ETF-based separately managed account (SMA) product that was designed to improve on traditional SMAs in three ways:

1. It aims to exceed returns of passive index strategies with a
proprietary, data-driven Tactical Asset Allocation (TAA) model that
guides ongoing proactive management of allocations. (See "Testing the
XTF Model," below.)
2. It evaluates the entire universe of all domestic ETFs to identify the
optimal mix of holdings when building and managing portfolios.
3. It charges lower fees due to its exclusive use of ETFs and highly
automated processes.

"The time is now to combine the complementary strengths of SMAs and ETFs," said Sander Gerber, chairman and CEO of XTF. "Through XTF's ETF-based SMA product, investment advisors will be able to grow their businesses and provide an improved level of service to their clients through greater returns and less risk."

The XTF SMA is already available through the CheckFree advisor platform or directly through XTF by calling 866-XTF-ETFS or visiting http://www.xtf.com/ . XTF expects the SMA product to be available through Fidelity's advisor platform later this year, as well.

In addition to its SMA product, XTF also offers the same sophisticated asset allocation strategies utilized by major financial institutions and a range of unbiased ETF education services, including XTF Insight, a monthly publication featuring exclusive news and commentary on trends in the ETF market.

"There is a unique opportunity for an ETF-based SMA product," said Gerber. "Quite simply, ETF-based portfolios represent a better way for financial professionals to invest on behalf of their clients, and I'm thrilled to turn our expertise into valuable solutions for financial professionals."

Testing the XTF Model

XTF's SMAs are managed using a proprietary Tactical Asset Allocation (TAA) model. Professor Edward Nelling of Drexel University back-tested this model against almost 20 years of historic returns for a passive index portfolio strategy.

In his research paper about the TAA model, Nelling wrote, "The Tactical Asset Allocation portfolios based on the XTF/TAA model all exhibited higher returns and lower risk than the corresponding benchmark portfolios from 1986 through 2004. The analysis in this report is based on a daily rebalancing of the actively managed TAA portfolio, compared with a quarterly rebalanced benchmark portfolio. However, monthly or quarterly TAA portfolios also outperform their benchmarks ... examination of annual returns indicates that the superior performance of the TAA portfolios is relatively consistent over time, and not simply due to one or two unusually good years."

The Expertise Behind XTF Advisors

Gerber brings together a diverse management team from throughout the financial community, including Rob Adler, former head of mutual fund marketing at Shearson Lehman and a veteran of the mutual fund industry, and Darvin Klarin, who brought more than 20 years of leadership in the consumer and capital markets divisions at Merrill Lynch.

In addition to the senior management team, XTF Advisors is able to leverage the ETF-focused industry expertise of other XTF Group affiliates, including XTF Market Making and XTF Capital. As one of the largest ETF market making firms at the American Stock Exchange, XTF Market Making can offer XTF Advisors its significant resources in the area of ETF research and quantitative analysis.

About XTF Advisors

XTF's goal is to transform the way Americans invest. The company brings financial professionals and individual investors a suite of unbiased ETF-based portfolios, asset allocation strategies and education. With impartial analysis and a proprietary quantitative investment model, XTF builds ETF portfolios designed to offer stronger, more consistent returns, lower costs, greater tax efficiency and improved transparency, as compared to other investment choices. XTF's affiliated companies include XTF Market Making LLC, XTF Advisors LLC and XTF Capital LLC. Visit the company online at http://www.xtf.com/ or call 866-XTF-ETFS to learn more about setting up an account.

Source: XTF Advisors

CONTACT: Lonny White, lonny@scanloncc.com , or Josh Inglis,
josh@scanloncc.com , both of Scanlon Corporate Communications,
+1-312-372-4400

Web site: http://www.xtf.com/

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Profile: financial services