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.
MarketGrader Core Portfolio
Our Core Portfolio captures the essence of MarketGrader performance – fundamentals-based growth at a reasonable price (GARP) investing – in a 300-stock portfolio that’s a direct alternative to an S&P 500 index fund.
Learn MoreThe BBAE MarketGrader portfolios are designed to track model portfolios developed by MarketGrader, which are "indexes of indexes." All historical data presented on this page solely pertains to the backtested performance of the model portfolios created by MarketGrader. It is important to note that this historical data does not reflect the actual performance of any BBAE portfolio, and that backtested results do not represent realized investment outcomes. Actual investment results may differ and will include fees, and may be affected by trading slippage and other factors. All figures are based on total returns, through August 31, 2023.Cumulative Returns
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10-year
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MarketGrader Core Portfolio.........S&P 500.........MarketGrader Growth Compounding Portfolio
Like the Core Portfolio, our Growth Compounding Portfolio has 300 stocks, but includes more small and mid-cap companies and a more growth-focused factor weighting in pursuit of slightly higher capital appreciation for investors comfortable with a bit more volatility.
Learn MoreThe BBAE MarketGrader portfolios are designed to track model portfolios developed by MarketGrader, which are "indexes of indexes." All historical data presented on this page solely pertains to the backtested performance of the model portfolios created by MarketGrader. It is important to note that this historical data does not reflect the actual performance of any BBAE portfolio, and that backtested results do not represent realized investment outcomes. Actual investment results may differ and will include fees, and may be affected by trading slippage and other factors. All figures are based on total returns, through August 31, 2023.Cumulative Returns
15-year
10-year
5-year
MarketGrader Growth Compounding Portfolio.........S&P 500.........MarketGrader Growth and Income Portfolio
Our Growth and Income Portfolio is designed for investors who are looking to achieve both high yield and capital appreciation. MarketGrader’s model consists of 100 carefully selected stocks and aims to deliver an annual dividend yield of 4.5% to 5%, while also striving to match the market’s price return.
Learn MoreThe BBAE MarketGrader portfolios are designed to track model portfolios developed by MarketGrader, which are "indexes of indexes." All historical data presented on this page solely pertains to the backtested performance of the model portfolios created by MarketGrader. It is important to note that this historical data does not reflect the actual performance of any BBAE portfolio, and that backtested results do not represent realized investment outcomes. Actual investment results may differ and will include fees, and may be affected by trading slippage and other factors. All figures are based on total returns, through August 31, 2023.Cumulative Returns
15-year
10-year
5-year
MarketGrader Growth and Income Portfolio.........Dow Jones Select Dividend Index.........