Factor-Based Stock Portfolios

Guru Based on Annual
Return
James O'Shaughnessy 20.1%
Meb Faber 20.3%
Partha Mohanram 14.0%
Dashan Huang 18.1%
Motley Fool 12.1%
Validea 15.7%
Benjamin Graham 11.2%
Patrick O'Shaughnessy 14.8%
Kenneth Fisher 10.7%
Validea 10.6%
* Returns are model returns and do not reflect actual trading. Full performance disclaimer
All Stock Portfolios

Factor-Based ETF Portfolios

Portfolio Annual
Return
Factor Rotation - Momentum with Trend 11.9%
Factor Rotation - Composite with Trend 11.7%
Factor Rotation - Momentum 10.8%
Factor Rotation - Composite 10.4%
Factor Rotation - Value with Trend 9.5%
* Returns are model returns and do not reflect actual trading. Full performance disclaimer
All ETF Portfolios

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Our Latest Articles

3/29/2023

Combining Sentiment and Fundamentals: How Quant Models Uncover Opportunities

By Justin Carbonneau (@jjcarbonneau)

In my previous article, "Unlocking the Market's Mood," we explored various methods of gauging investor sentiment in stocks. In this article, we'll delve into how different investing models on Validea employ some of these sentiment indicators to find their way into the fundamental models we run, including analyst earnings revisions, buy and sell recommendations, insider buying, stock buybacks, and momentum.

3/8/2023

The Surprising Investment Factor That Defies the Risk-Return Tradeoff

By Jack Forehand, CFA, CFP® (@practicalquant)

There are some core principles that are supposed to govern investing. If I were to ask you to come up with the most important one of those principles off the top of your head, there is a pretty good chance you would tell me that to get a better return you need to take more risk. And in my experience, that principle is a very good one and does hold the majority of the time.
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Excess Returns Podcast

3/30/2023

Episode 199: Factor Investing in Under the Radar Markets with Chris Covington

In this episode, we talk factor investing with AJO Vista Head of Investments Chris Covington. We discuss their unique approach to factor investing and how they apply it to less crowded markets. We take a detailed look at their strategy and discuss value, quality, momentum and their approach to measuring stability. We also cover a wide range of other topics including multi-factor investing, the impact of transaction costs, the dangers of overoptimization and a lot more.

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3/23/2023

Episode 198: A Deep Dive into Custom and Direct Indexing with Ehren Stanhope

Direct Indexing has experienced rapid growth in recent years. Falling transaction costs and improving technology has allowed more and more investors to deploy an index-based strategy by owning the underlying securities rather than using an ETF or Mutual Fund. This has opened up opportunities to potentially improve after tax returns and to customize index-based portfolios for each investor’s needs. In this episode, we speak with O'Shaughnessy Asset Management’s Ehren Stanhope. O’Shaughnessy’s custom indexing platform has expanded the potential of direct indexing by layering a series of features on top of it to allow investors to build custom portfolios to fir their individual needs.

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The Education of a Financial Planner Podcast

3/27/2023

Episode 5: Retirement Planning in Your Prime Earning Years

Regardless of when you start saving for retirement, the most important period to save is probably the period when your income is at its peak. In this episode, we discuss how to think about retirement saving during your prime earning years. We discuss the Roth vs. traditional IRA debate, the importance of avoiding lifestyle creep, how to think about how much you need for retirement, the benefits of Monte Carlo simulation and a lot more.

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3/21/2023

Episode 4: A Detailed Look at FDIC and SIPC Insurance and the Protections Available for Investors

With the failure of Silicon Valley Bank, many investors have been worried about if their money is protected. In this episode, we take a detailed look at the protections provided by FDIC and SIPC insurance and how they work in the real world. We also look at protections available for depositors at credit unions, cash value in life insurance policies and a lot more.

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Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach. The model portfolios offered on Validea are concentrated and as a result they will exhibit high levels of volatility and their performance can be substantially impacted by the performance of individual positions.

Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.

Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.

Validea.com is a research provider that is owned and operated by The Reese Group, LLC. Validea.com offers model portfolios, screening and stock analysis that is not customized to any individual. No information on Validea.com should be construed as investment advice. Validea Capital Management is a separate investment advisory firm registered with the state of Connecticut. Validea Capital offers investment management services directly to clients and is a separate entity from The Reese Group, LLC. The Reese Group and Validea Capital are affiliated entities and share partial common ownership.