Factor-Based Stock Portfolios

Guru Based on Annual
Return
Meb Faber 21.9%
Partha Mohanram 14.7%
James O'Shaughnessy 19.0%
Dashan Huang 18.4%
Motley Fool 13.1%
Validea 16.5%
Kenneth Fisher 12.4%
Martin Zweig 11.5%
Benjamin Graham 11.5%
Peter Lynch 11.4%
* 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 11.8%
Factor Rotation - Momentum 11.0%
Factor Rotation - Composite 10.7%
Factor Rotation - Value 9.6%
* Returns are model returns and do not reflect actual trading. Full performance disclaimer
All ETF Portfolios

Our Latest Articles

11/29/2023

Optimism vs. Pessimism: Defining Your Investing Future

By Justin Carbonneau (@jjcarbonneau)

Optimism is defined as the "hopefulness and confidence about the future or the successful outcome of something." Pessimism is defined as "a tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future." I think for most investors their degree of optimism and pessimism likely fluctuates with the performance of their investments and the overall market.

11/16/2023

Why It's Great to be an Investor Now in 2023

By Justin Carbonneau (@jjcarbonneau)

This may seem like a strange headline given the path of stocks over the past two years. Many equity investors, particularly in the small-cap space, are likely looking at their portfolio values and seeing very little growth, and possibly losses. But today's investor, mostly due to structural efficiencies, technology, fees, optionality and tools, resources and investing education, is probably better off than ever before.
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Excess Returns Podcast

1/4/2024

Episode 246: What Generative AI Means for Investors with Adam Butler

Generative AI is probably the most rapidly developing technology we have ever seen. In this episode, we dig deep into it and its potential impact on both our lives and the investing world with ReSolve Asset Management CIO Adam Butler. Adam is one of the smartest people we know and has been dedicating a large amount of his free time to utilizing the technology, so we couldn't think of a better person to help us better understand it. We discuss how it works, what it means for both people who build investing strategies and those that utilize them and how it might change the world.

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12/28/2023

Episode 245: 100+ Great Investors Share Their Most Important Investing Lesson

We have now conducted over 100 interviews on Excess Returns. At the end of all of them, we have asked the same closing question: Based on your experience in markets and your research, if you could teach one lesson to the average investor, what would it be? In this episode, we bring all of their answers together into one episode and share the insights of all our guests, including Guy Spier, Rob Arnott, Michael Mauboussin, Steve Romick, Joel Tillinghast, Cem Karsan, Bob Ellott, Jerry Parker, Andy Constan and many more.

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All Episodes

Two Quants and a Financial Planner Podcast

1/8/2024

Episode 46: Lessons from the Rise and Fall (And Rise Again?) of ARK

Technology booms can lead to massive change in our society. They can also lead to huge profits for investors who invest in them. But those huge gains can also be followed by major losses when they inevitably run their course. There is probably no better way to understand the lessons for investors from these periods than to look at the story of ARK Investments. ARK's flagship innovation ETF generated eye popping returns in the years leading up to 2021. Then it gave many of those returns back as investors questioned whether the prospects if the companies it owned justified their high valuations. And then it bounced back in a big way in 2023, although it still sits well below its highs. In this episode, we use the story of ARK to highlight some of the most important lessons we think investors can learn about investing in innovation and concentrated strategies.

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1/1/2024

Episode 45: Nine Investing and Life Lessons From 2023

2023 was a very interesting year in markets. The pessimism many investors had at the beginning of the year turned out to be unfounded as markets produced well above average returns. And the economy also remained more resilient than many thought, with inflation falling more than expectations throughout the year. Now that 2023 has come to a close, we wanted to take a look back and share the biggest lessons we learned from the year. We discuss what we learned in markets and what we learned in our lives and how that will inform our approach going forward.

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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.