BBAE MarketGrader Portfolios – January 2025 Monthly Review
As we enter 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. Let’s take a look at their performance in January 2025.
January 2025: Monthly Performance
January 2025 was a particularly tumultuous month for the stock market, marked by significant volatility driven by several key factors, including the inauguration of President Donald Trump, the implications of his tariff policies, and the unexpected impact of China’s DeepSeek technology. Despite the market turbulence, all BBAE MarketGrader portfolios delivered strong performance, surpassing their respective benchmarks. Here’s a breakdown of their results:
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: +4%
- Benchmark (S&P 500 Index): +2.78%
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: +4.56%
- Benchmark (S&P 500 Index): +2.78%
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: +2.92%
- Benchmark (Dow Jones Select Dividend Index): +2.73%
Despite the broader market’s positive performance, all three portfolios outperformed their respective benchmarks, reflecting the strength of MarketGrader’s stock selection methodology.
Long-Term Performance: Cumulative Returns Since January 2008
The long-term value of MarketGrader’s disciplined, rules-based approach is clear. Here’s how the portfolios compare to their benchmarks over the past 16 years:
These cumulative returns demonstrate the consistent outperformance of MarketGrader’s portfolios, delivering strong results for investors.
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: Despite the short-term volatility, the portfolios show strong long-term outperformance.
- 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.
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, The MarketGrader US Core Portfolio Index, and The MarketGrader US Income 100 Index were 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.
