BBAE MarketGrader Portfolios – February 2025 Monthly Review
As we move further into 2025, it’s time to evaluate the performance of BBAE’s three flagship MarketGrader portfolios: the Growth Compounding Portfolio, the Core Portfolio, and the Income 100 Portfolio. These portfolios leverage smart beta strategies and a disciplined, rules-based approach to deliver long-term results. As always, investors should keep in mind their financial goals, risk tolerance, and market conditions when assessing investment opportunities.
Let’s take a look at their performance in February 2025
February 2025: Monthly Performance
After a strong start in January, February presented a more challenging market environment. Broader market declines were influenced by shifting monetary policy expectations, continued geopolitical uncertainties, and sector-specific pressures. Despite this turbulence, MarketGrader’s disciplined selection methodology remains a cornerstone for long-term investing. Here’s how our portfolios performed in February 2025:
1. MarketGrader Core Portfolio: Balancing Growth and Value
The BBAE MarketGrader Core Portfolio seeks to track the MarketGrader US Core Portfolio Index, offering diversified exposure to U.S. equities across large, mid, and small caps. The index is built from four MarketGrader Indexes, providing a balanced mix of growth and value through MarketGrader’s GARP + Quality analysis.
Performance:
- MarketGrader Core Portfolio: -3.18%
- Benchmark (S&P 500 Index): -1.30%
2. MarketGrader Growth Portfolio: High-Growth Opportunities
The BBAE MarketGrader Growth Compounding Portfolio aims to mirror the MarketGrader US Growth Compounding Portfolio Index. This growth-focused index provides 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: -3.67%
- Benchmark (S&P 500 Index): -1.30%
3. MarketGrader Income Portfolio: Steady Income Streams
The BBAE MarketGrader Income 100 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 blends income generation with potential for capital appreciation, appealing to income-oriented investors.
Performance:
- MarketGrader Income 100 Portfolio: -3.79%
- Benchmark (Dow Jones Select Dividend Index): +2.53%
While February presented a tougher environment, MarketGrader’s systematic investment approach ensures that these portfolios remain positioned for long-term growth and resilience against short-term volatility.
Long-Term Performance: Cumulative Returns Since January 2008
The long-term value of MarketGrader’s disciplined, rules-based approach remains evident. Over the past 16 years, all three portfolios continue to outperform their respective benchmarks, reinforcing the effectiveness of smart beta investing. These returns include both live and back-tested performance data, which may not fully reflect real market conditions.
Key Takeaways
- Effortless Diversification: Through BBAE’s MyAdvisor, investors can easily access diversified exposure to hundreds of stocks across different market caps and strategies.
- Resilience and Outperformance: While short-term market fluctuations are inevitable, MarketGrader portfolios maintain strong long-term outperformance. However, past performance does not guarantee future results.
- Customizable for Every Investor: Whether seeking growth, balanced stability, or income, these portfolios cater to a wide variety of investment goals.
Final Thoughts
MarketGrader’s portfolios, powered by BBAE’s MyAdvisor platform, continue to highlight 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 exclusive to institutional investors. Whether you’re an experienced investor or just beginning your journey, the user-friendly BBAE app makes building long-term wealth simple and effective.
Experience the future of investing today with BBAE MyAdvisor—where the power of smart beta is 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.
