Smarter Smart Beta
Smart beta has taken the investing world by storm – and for good reason: An index-like portfolio of individual stocks that targets better risk-adjusted returns than an actual index fund is something that should fit into nearly every investor’s portfolio.
There’s beta – which involves allocating a portion of your portfolio to match the overall market return - and then there's smart beta: which aims to achieve slightly higher returns per unit of risk. And then there’s BBAE’s smart beta, powered by MarketGrader, a firm with a 20-plus year history that’s been doing smart beta before it was even called smart beta, and whose indices have a track record of outperforming their benchmarks.
BBAE’s MarketGrader smart beta portfolios – which we balance with BBAE's Fixed Income portfolio – is based not on one or a few factors like you’ll commonly see, but on 24 fundamental factors (like the price-to-equity ratio and return on equity) that have the support of academia and practitioners alike.
Smart beta, including BBAE’s portfolios below, is not about chasing high returns. Rather, think of it as a better building block for your portfolio’s baseline. A modest step forward that, compounded over the years, should give your portfolio a big leg up.
A final benefit? Transparency. With BBAE’s managed accounts, unlike with funds, you hold all the stocks directly in your account (we just do the trading to make it easy for you). If you’re worried because you’ve seen managed accounts requiring minimum investments of $100,000 or more, don’t be: BBAE’s minimum’s are as low as $2,000.
- The MarketGrader US Core Portfolio Index was first published on September 4, 2023. All estimated daily historical closing prices prior to that date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Back tested performance information is purely hypothetical and is solely for informational purposes. Back tested performance does not represent actual performance and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results.
The BBAE MarketGrader Core Portfolio
Learn MoreThe BBAE MarketGrader Core Portfolio seeks investment results that correspond, generally, before fees and expenses, to the performance of the MarketGrader US Core Portfolio Index. The MarketGrader US Core Portfolio Index provides exposure to a rules-based index intended to give investors a means of tracking U.S. companies that rank highly in MarketGrader’s GARP (growth-at-a-reasonable-price) + Quality analysis. Through a diversified exposure to US equities across large, mid, and small caps, the index is intended to serve investors as a core holding within their portfolio. The MarketGrader US Core Portfolio Index is built from a combination of four MarketGrader Indexes that include the MarketGrader US Select Large Cap Index, the MarketGrader US Large Cap 100 Index, the MarketGrader US Mid Cap 100 Index, and the MarketGrader US Small Cap 100 Index.
The MarketGrader US Core Portfolio Index
Cumulative Index Returns
15-year
10-year
5-year
The MarketGrader US Core Portfolio Index.........S&P 500 Index......... - The MarketGrader US Growth Compounding Portfolio Index was first published on September 4, 2023. All estimated daily historical closing prices prior to that date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Back tested performance information is purely hypothetical and is solely for informational purposes. Back tested performance does not represent actual performance and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results.
The BBAE MarketGrader Growth Compounding Portfolio
Learn MoreThe BBAE MarketGrader Growth Compounding Portfolio seeks investment results that correspond, generally, before fees and expenses, to the performance of the MarketGrader US Growth Compounding Portfolio Index. The MarketGrader US Growth Compounding Portfolio Index provides exposure to a rules-based index intended to give investors a means of tracking high performing U.S. companies. Through a diversified exposure to US equities across large, mid, and small caps, the index is intended to serve investors as a growth-oriented holding within their portfolio. The MarketGrader US Growth Compounding Portfolio Index is built from a combination of four MarketGrader Indexes that include the MarketGrader US Select Large Cap Index, the MarketGrader US Large Cap 100 Index, the MarketGrader US Mid Cap 100 Index, and the MarketGrader US Small Cap 100 Index.
The MarketGrader US Growth Compounding Portfolio Index
Cumulative Index Returns
15-year
10-year
5-year
The MarketGrader US Growth Compounding Portfolio Index.........S&P 500 Index......... - The MarketGrader US Income 100 Index was first published on September 4, 2023. All estimated daily historical closing prices prior to that date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Back tested performance information is purely hypothetical and is solely for informational purposes. Back tested performance does not represent actual performance and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results.
The BBAE MarketGrader Growth and Income Portfolio
Learn MoreThe BBAE MarketGrader Growth and Income Portfolio aims to achieve investment results that, before fees and expenses, generally correspond to the performance of the MarketGrader US Income 100 Index. This particular index offers investors a strategic approach to gaining exposure to U.S. companies known not only for substantial dividend yields but also for scoring favorably in MarketGrader’s proprietary GARP (growth-at-a-reasonable-price) + Quality analysis. The emphasis of the MarketGrader US Income 100 Index is on identifying companies that offer the potential for both income generation through dividends and capital appreciation, which can be particularly appealing to income-focused investors seeking a balanced approach to growth and income.
The MarketGrader US Income 100 Index
Cumulative Index Returns
15-year
10-year
5-year
The MarketGrader US Income 100 Index.........Dow Jones Select Dividend Index.........