BBAE MarketGrader Portfolios – December 2024 Monthly Review
As 2024 comes to a close, it’s time to reflect on the performance of MarketGrader’s three flagship portfolios: the Growth Compounding Portfolio, the Core Portfolio, and the Income 100 Portfolio. These portfolios combine smart beta strategies with a robust, rules-based approach to deliver long-term results. Let’s examine how they performed in December 2024 and over the long term.
December 2024: Monthly Performance
December was a challenging month for all MarketGrader portfolios, reflecting broader market volatility. Here’s how they performed compared to their benchmarks:
1. MarketGrader Core Portfolio: Balancing Growth and Value
The BBAE MarketGrader Core Portfolio aims to track the MarketGrader US Core Portfolio Index, providing diversified exposure to U.S. equities across large, mid, and small caps. The index is built from four MarketGrader Indexes, offering a balanced mix of growth and value through MarketGrader’s GARP + Quality analysis.
Performance:
- MarketGrader Core Portfolio: -2.89%
- Benchmark (S&P 500 Index): -2.38%
2. MarketGrader Growth Portfolio: High-Growth Opportunities
The BBAE MarketGrader Growth Compounding Portfolio seeks to mirror the MarketGrader US Growth Compounding Portfolio Index. This growth-oriented index offers exposure to high-performing U.S. companies across all market caps, selected using a rules-based approach and MarketGrader’s proprietary analysis.
Performance:
- MarketGrader Growth Compounding Portfolio: -3.62%
- Benchmark (S&P 500 Index): -2.38%
3. MarketGrader Income Portfolio: Steady Income Streams
The BBAE MarketGrader Growth and Income Portfolio tracks the MarketGrader US Income 100 Index, focusing on U.S. companies with substantial dividend yields and strong scores in MarketGrader’s GARP + Quality analysis. It combines income generation with potential for capital appreciation, appealing to income-focused investors.
Performance:
- MarketGrader Income 100 Portfolio: -5.42%
- Benchmark (Dow Jones Select Dividend Index): -7.52%
Even though the Growth Compounding Portfolio and Core Portfolio underperformed the S&P 500 Index in December, the long-term performance of these portfolios remains impressive.
Long-Term Performance: Cumulative Returns Since January 2008
The strength of MarketGrader’s fundamental, rules-based methodology is evident in its long-term outperformance. Here’s how the portfolios compare to their respective benchmarks over the last 16 years:
These cumulative returns highlight the long-term value of MarketGrader’s disciplined approach to stock selection. Over the years, the portfolios have consistently outperformed their benchmarks by a wide margin, delivering exceptional results for investors.
Key Takeaways
- Effortless Diversification: Through BBAE’s MyAdvisor, investors can easily gain diversified exposure to hundreds of stocks across different market caps and strategies.
- Resilience and Outperformance: Despite short-term volatility, the portfolios demonstrate significant long-term outperformance.
- Customizable for Every Investor: Whether seeking growth, balanced stability, or income, these portfolios cater to a wide range of investment goals.
Final Thoughts
MarketGrader’s portfolios, powered by BBAE’s MyAdvisor platform, continue to showcase the potential of smart beta investing. By combining rigorous stock selection with transparency and diversification, BBAE is democratizing access to sophisticated strategies that were once the domain of institutional investors. Whether you are a seasoned investor or just beginning your journey, the user-friendly BBAE app makes building long-term wealth both simple and effective.
Experience the future of investing today with BBAE MyAdvisor—where the power of smart beta is truly at your fingertips.
The performance data presented in this review is based on historical performance and, where applicable, includes hypothetical back-tested data. Back-tested performance is not actual performance but is derived from the application of a model developed with the benefit of hindsight. It does not reflect actual trading, market conditions, or investor experience and may not accurately predict future performance.
Performance results are presented net of fees for hypothetical calculations but may not account for all relevant fees or costs incurred by investors, including advisory fees, transaction fees, or other expenses. Actual client results may differ due to individual investment objectives, cash flows, and market conditions.
Comparisons to benchmarks, such as the S&P 500 Index and Dow Jones Select Dividend Index, are provided for informational purposes only. These benchmarks have different investment methodologies, risk profiles, and expense structures than the MarketGrader portfolios. Past performance is not indicative of future results. All investments carry risk, including the potential loss of principal.
The MarketGrader US Growth Compounding Portfolio Index was first published on September 4, 2023. All daily historical closing prices prior to that date are based on back-tested data and are for informational purposes only.
The strategies highlighted, including “long-term outperformance,” may reflect historical periods of favorable market conditions and do not account for potential risks such as sector concentration, volatility, or economic downturns. Investors should not assume that historical performance or the conclusions drawn in this review will necessarily be replicated in the future.
Before investing, carefully consider your financial objectives, risk tolerance, and investment horizon. Consult with a qualified financial advisor for guidance tailored to your circumstances
