Factor-Based Stock Portfolios

Guru Based on Annual
Return
Meb Faber 21.4%
James O'Shaughnessy 19.1%
Partha Mohanram 13.8%
Dashan Huang 17.3%
Motley Fool 11.9%
Validea 15.7%
Kenneth Fisher 11.3%
Benjamin Graham 11.1%
Patrick O'Shaughnessy 14.8%
Martin Zweig 10.7%
* 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 11.5%
Factor Rotation - Composite with Trend 11.3%
Factor Rotation - Momentum 10.6%
Factor Rotation - Composite 10.2%
Factor Rotation - Value with Trend 9.2%
* Returns are model returns and do not reflect actual trading. Full performance disclaimer
All ETF Portfolios

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Simple trend-based system covering all the major asset classes.

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Our Latest Articles

8/22/2023

Investing for Longevity: Wealth Creation Inspired by Blue Zone Habits

By Justin Carbonneau (@jjcarbonneau)

Netflix has a new documentary out on Centenarians (Live to 100: Secrets of the Blue Zones) – individuals who live to 100+ years old – and areas of the world with there are high density clusters of centenarians, called Blue Zones. The host of the film, Dan Buettner is author of the book “The Blue Zones Secrets for Living Longer: Lessons From the Healthiest Places on Earth”. Buettner identifies a handful of regions around the world where these Blue Zones exist: Okinawa, Japan; Sardinia, Italy; Ikaria, Greece; Nicoya, Costa Rica; and Loma Linda, California. Even though these are highly differentiated cultures, geographies and lifestyles, there appears to be a common set of qualities, routines and habits found in these Blue Zones.

9/6/2023

Small Cap Value: Waiting for the Jumpstart

By Justin Carbonneau (@jjcarbonneau)

Over the past few weeks, I’ve seen a number of charts highlighting the opportunity in small-cap stocks given their absolute and relative valuations. When I see these charts, my ears definitely perk up because many of the models we run are heavily positioned in small (and mid) caps, and specifically the cheaper value stocks in this segment of the market. The chart below, from First Eagle Investments, “It (May Be) a Small World After All”, shows the valuation of the Russell 2000 going back to 1997. Small caps haven’t been this cheap on an absolute basis since the Financial Crisis. They have been hovering around a Price-Earnings multiple of 11.5, compared to the average of 16.9 over the last quarter-century.
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Excess Returns Podcast

9/22/2023

Episode 229: Quantitative Asset Management - Building Systematic Real-World Strategies | Michael Robbins

In this episode, we take a deep dive into quantitative investing with Michael Robbins, author of the new book "Quantitative Asset Management: Factor Investing and Machine Learning for Institutional Investing." We discuss data science and machine learning, factor investing, risk management, the qualities of a good back test and a lot more.

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9/20/2023

Episode 228: Conservative Investing - Using Trend Following to Manage Risk and Drawdowns | James St. Aubin

In this episode, we talk trend following and conservative investing with Sierra Mutual Funds CIO James St. Aubin. We talk about their unique banded moving average approach to trend following and how they utilize it to manage risk in client portfolios. We also discuss the importance of educating investors, what makes a good investment manager, quantitative vs discretionary management and a lot more.

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The Education of a Financial Planner Podcast

9/18/2023

Episode 30: Direct Indexing | How it Works and Whether It Is Worth It for Investors - Featuring Lee Boudouris

Many believe that direct indexing will be the next big trend in investing. While it used to be reserved for high-net-worth individuals, zero commissions and the ability to trade partial shares has now brought it to the masses. But does it make sense for investors to utilize the strategy? As is usually the case with all investing tools, the answer is "it depends". In this episode, Lee Boudouris of Sunpointe Investment joins us to look at how direct indexing strategies work and the pros and the cons of the approach.

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9/5/2023

Episode 29: Two Quants and a Financial Planner Talk Inflation

The inflation experience of the last few years has been unlike anything many investors have ever seen before. And it has impacted all of our lives in many different ways. In this episode we try to put all of it in context. We discuss the causes of inflation, the challenges of measuring and predicting it, how different asset classes perform during high inflation and how we look at high inflation from both a portfolio construction and financial planning perspective.

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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.