Factor-Based Stock Portfolios

Guru Based on Annual
Return
Meb Faber 21.5%
James O'Shaughnessy 18.9%
Partha Mohanram 13.8%
Dashan Huang 17.2%
Validea 15.8%
Motley Fool 11.9%
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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Our Latest Articles

9/13/2023

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

9/29/2023

Episode 231: Lessons From 30 Years as a Value Investor | Steve Romick

In this episode, we speak with FPA Crescent Manager Steve Romick. Steve has built an exceptional long-term record using an approach that combines value investing with protection of capital and drawdown management. We discuss the biggest lessons he has learned in his decades of managing money, get his take on the current state of value investing and talk about many of the unique aspects of managing a go anywhere fund.

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9/27/2023

Episode 230: Excess Returns After Hours with Tobias Carlisle | Some Much Needed Therapy for Value Investors

It has been a painful last decade for value investors. In this episode, our good friend Tobias Carlisle returns to commiserate about the struggles of value and also to talk about the future opportunity it may create. We discuss value spreads, the importance of enduring pain, the comparison with 2000 and a lot more. We also get an update on Toby's new book.

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The Education of a Financial Planner Podcast

10/2/2023

Episode 32: Roth Conversions | What Investors Need to Know

In this episode, we are joined by Sunpointe's Ben Tuscai to take a deep dive into Roth conversions. We discuss the criteria that investors can use to determine when the make sense and why they aren't used in the real world as often as you might think. We also discuss back door Roth conversions, mega back door Roth conversions, conversions inside employer plans and a lot more.

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9/25/2023

Episode 31: The Many Sides of Diversification | Spreading Your Bets Across Stocks, Factors and Asset Classes

The idea of diversification is simple. Most investors understand that spreading your bets and avoiding overconcentration is a good idea. But the details behind how to do that can be much more complicated. In this episode, we take a deep dive into diversification. We look at the number of stocks a portfolio needs to be diversified, the importance of factor diversification, whether a portfolio with only stocks and bonds can be considered properly diversified and why rebalancing is an essential part of diversification.

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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.