Factor-Based Stock Portfolios

Guru Based on Annual
Return
Meb Faber 21.0%
James O'Shaughnessy 18.5%
Partha Mohanram 13.4%
Dashan Huang 17.0%
Motley Fool 11.9%
Validea 15.5%
Patrick O'Shaughnessy 14.9%
Kenneth Fisher 10.9%
Benjamin Graham 10.8%
Martin Zweig 10.5%
* 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 11.2%
Factor Rotation - Composite with Trend 11.0%
Factor Rotation - Momentum 10.3%
Factor Rotation - Composite 9.8%
Factor Rotation - Value with Trend 8.8%
* Returns are model returns and do not reflect actual trading. Full performance disclaimer
All ETF Portfolios

Our Latest Articles

10/18/2023

Navigating the Magnificent Seven's Fundamentals

By Justin Carbonneau (@jjcarbonneau)

What do you see when you look inside your portfolio so far this year? Do you have a broad, diverse set of winning positions or are most of your gains in just a few stocks. I'm guessing for most investors, it's the latter, which paints a revealing picture of what has transpired in the market this year - a handful of ultra-large stocks, known as the "Magnificent Seven" - Amazon, Apple, Google (Alphabet), Meta, Microsoft, Nvidia and Tesla - have driven a substantial part of the overall gains.

10/4/2023

The Long Game: Why Patience and Perspective Matter in Investing

By Justin Carbonneau (@jjcarbonneau)

Patience can be defined as the capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset. It's the ability to endure difficult circumstances, persevere in the face of adversity, or wait calmly for the achievement of a goal. Patience pays off when investing. Patience is also hard.
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Excess Returns Podcast

10/19/2023

Episode 234: All Weather Investing with Eric Crittenden

In this episode, we talk all weather investing with Standpoint's Eric Crittenden. We discuss the case for an all weather strategy relative to a stock and bond portfolio, the challenges of looking different than the market, portfolio construction, international diversification, leverage, the characteristics of a good back test and a lot more.

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10/17/2023

New Podcast: The OPEX Effect

In our inaugural episode of the OPEX effect, Brent Kochuba, Jack Forehand and Justn Carbonneau look at the options market as we approach the October expiration and the big takeaways investors can take from it. We discuss the role options flows play in the market, look at current positioning in the S&P 500 market and also cover bonds, the MAG 7, the Ozempic trade and a lot more.

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All Episodes

The Education of a Financial Planner Podcast

10/23/2023

Episode 35: Is Value Investing Dead? A Quant and a Financial Planner Discuss

With value investing now having struggled for over a decade, many are questioning whether the strategy has become permanently broken. In this episode we examine the arguments against value investing both from the perspective of a quant investor who builds value strategies and a financial planner who uses them. We look at the different types of value strategies and why value isn't just buying the cheapest stocks. We then get into the arguments against value and discuss whether value's popularity has destroyed its outperformance, if the Fed and market cycles have broken value and if technology's dominance can explain the struggles of the past decade.

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10/16/2023

Episode 34: Understanding the Business of Franchising with Ben Terrill

In this episode, we look at the basics of franchising with FranNet's Ben Terrill. We discuss the types of businesses that can be setup via franchising, the pros and cons of the model vs. setting up a traditional business and how the economics work. We also talk about how starting a franchise can fit into a traditional financial plan.

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All Episodes
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.