Frequently Asked Questions
What is the key difference between a broker and a Registered Investment Advisor (RIA) affiliate like Chapman Capital Advisors?
You suggest that fees at Chapman Capital Advisors are lower than most of your competitors. Are you doing something different that gives you a competitive edge?
At CCA, we utilize Exchange Traded Funds (ETFs) and individual securities to build client portfolios. We are diligent about costs, and we normally select ETFs that have expense ratios in the bottom quartile. Frequently, we purchase individual securities which have no expense ratio. Many of our competitors use actively-managed mutual funds. This practice creates a second layer of fees for the client. According to the 2016 Investment Company Institute Factbook, the average fee for actively-managed stock mutual funds in 2015 was 0.84% (ICI 2016 Factbook). Fees like these are in addition to the advisory fee charged for selecting your mutual funds and managing your asset allocation. The clients’ fee at Chapman Capital is very competitive because we employ low-fee ETFs or no-fee individual securities, or a blend of both.
What is a CFP®, CERTIFIED FINANCIAL PLANNER™?
What is a CFA® , Chartered Financial Analyst ?
How can I be confident that Chapman Capital Advisors is not another ‘Bernie Madoff?’
At CWA, we have important safeguards in place to give our clients confidence their assets are being handled with the utmost integrity. First, Charles Schwab is the independent custodian for our clients’ accounts. Charles Schwab is the largest custodian of client assets for independent advisors, with $800 billion in their custody as of 2015. Since our clients’ investments are held at Charles Schwab, the client account statements are produced by Schwab, not by Chapman Capital Advisors. Employing a respected custodian such as Charles Schwab provides transparent and independent reporting for our clients. In addition, our clients can view their assets from any computer or device by logging on to Charles Schwab online. Using Charles Schwab as an independent custodian is a vital check and balance measure which helps protect our clients from fraud or identity theft.
If I do not live in Florida, can Chapman Capital Advisors handle my investments?
Chapman Capital Advisors is a Registered Investment Advisor affiliate that is licensed with the U.S. Securities and Exchange Commission. We are able to advise clients throughout the country.