The WT Wealth Management CSE Portfolio - Learning Spotlight

For over a decade, while many advisors adopted widespread use of mutual funds and ETFs, WT Wealth Management has developed and managed an individual equity strategy centered around what we consider the most culturally significant equities (CSE) of today.


“Culturally significant" refers to something that is widely accepted, adopted, and frequently used in society today.


More than 10 years ago, we uncovered a key insight: clients like to know what they own. Equity investing means owning a piece of the underlying company. However, when investing through a mutual fund or exchange traded fund (ETF) —often represented by a random ticker symbol—there’s little connection to the actual holdings beyond performance. If returns are strong, clients are satisfied; if not, the investment is replaced with yet another esoteric symbol.

The idea of owning individual equities is not new. In fact, for the better part of the last century, that’s how most investors accessed the equity markets. It wasn’t until the early 1990s that mutual funds, and later ETFs became the clearly dominant investment vehicles.

So how did we build our list of culturally significant companies?

Over the years, we’ve actively engaged with our clients—asking thoughtful questions, listening closely, and learning about how they live, and which brands are indispensable in their daily lives. In many ways, our equity selections have been “crowdsourced” from these conversations. We asked ourselves questions such as:

Our original list included names like Google, Amazon, Meta, Microsoft, Apple, Visa, MasterCard, Walmart, Costco, Uber, Nike, Starbucks, eBay, PayPal, Southwest Airlines, T-Mobile, Verizon, Netflix, Home Depot, and Adobe. Many of these names have been in the portfolio for over a decade. Some have rotated off and returned, while other names were added during life-altering events like the 2020 pandemic or the 2022 inflationary spike.

While one could live without Amazon, Netflix, Google, or Costco—do you really want to? And today, living without a smartphone is virtually impossible, making companies like Verizon and T-Mobile resilient across nearly all market conditions. Meanwhile, Visa and MasterCard have effectively replaced cash and checks in modern commerce.


In especially challenging market conditions, our clients often find comfort in knowing exactly what they own. Clients recognize that these companies are not just popular, they’re essential.


Often, when equity markets are weak, clients review the names in their portfolios and decide they’d like to own more of these companies while they’re trading at a discount. This rarely happens when the investment is just a random, unrecognizable ticker symbol—there’s simply no identifiable connection. Yet sometimes, that very connection is what gives investors the conviction to add to an existing position or remain invested through a particularly challenging period.

Of course, there are practical considerations. To own the full list of companies we favor, with appropriate diversification and allocations, a portfolio of at least $150,000 is typically required. For clients with smaller portfolios, we continue to use ETFs to ensure proper diversification, which remains a foundational pillar of our investment philosophy.

Additionally, we selectively use ETFs to complement our Culturally Significant Equity names in sectors where broad industry exposure is desired, but no clear market leader exists. Current examples include Aerospace & Defense, Healthcare, Financials, Energy, and Pharmaceuticals.

If you’d like more information about the WT Wealth Management Culturally Significant Equity Portfolio and want to understand how it could be useful in your overall financial plan, please contact your financial advisor.


View the WT Wealth Management Team



WARRANTIES & DISCLAIMERS

There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

View Disclosure
WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

Contact Us Today

Reach us directly at 800-825-0616
or by using the contact form below.

Your message has been sent. Thank you!
By checking this box, I consent to receive text messages related to my financial accounts and appointments from WT Wealth Management. You can reply STOP to opt-out at any time. Messages and data rates may apply. Message frequency will vary. Reply HELP for assistance. For more information refer to our Privacy Policy and SMS Terms and Conditions on our website.>
Cancel