The BBAE MarketGrader Core Portfolio
The MarketGrader US Core Portfolio IndexAug 2026
The BBAE MarketGrader Core Portfolio seeks investment results that correspond, generally, before fees and expenses, to the performance of the MarketGrader US Core Portfolio Index. The MarketGrader US Core Portfolio Index provides exposure to a rules-based index intended to give investors a means of tracking U.S. companies that rank highly in MarketGrader’s GARP (growth-at-a-reasonable-price) + Quality analysis. Through a diversified exposure to US equities across large, mid, and small caps, the index is intended to serve investors as a core holding within their portfolio. The MarketGrader US Core Portfolio Index is built from a combination of four MarketGrader Indexes that include the MarketGrader US Select Large Cap Index, the MarketGrader US Large Cap 100 Index, the MarketGrader US Mid Cap 100 Index, and the MarketGrader US Small Cap 100 Index.
| Metric | Portfolio | Benchmark |
|---|---|---|
| Cumulative return · 15Y | +891.3% | +729.1% |
| Cumulative return · 10Y | +399.9% | +317.9% |
| Cumulative return · 5Y | +92.1% | +82.5% |
| Annualized return · 15Y | +16.5% | +15.1% |
| Annualized return · 10Y | +17.5% | +15.4% |
| Annualized return · 5Y | +14.0% | +12.8% |
| Volatility · 15Y | 15.5% | 14.2% |
| Volatility · 10Y | 16.5% | 15.4% |
| Volatility · 5Y | 17.1% | 15.8% |
| Return / volatility · 15Y | 1.07 | 1.06 |
| Return / volatility · 10Y | 1.06 | 1.00 |
| Return / volatility · 5Y | 0.82 | 0.81 |
About these metrics
- Cumulative return
- The Cumulative Return represents the total performance of the MarketGrader Model Portfolio over a 15-year backtesting period. It provides a measure of the overall growth of the portfolio during this timeframe, considering changes in value and any reinvested earnings. This metric offers a comprehensive assessment of the portfolio’s performance over the specified 15-year period. The inception date of all the MarketGrader Model portfolios is December 31, 2007.
- Annualized return
- The Annualized Return is a measure that quantifies the average annual growth rate of the MarketGrader model portfolio over a 15-year backtesting period. It takes into account changes in value and any reinvested earnings on an annual basis. This metric provides a standardized way to evaluate the portfolio’s performance over time, allowing for meaningful comparisons with other investments. By annualizing the returns, it offers insight into the portfolio’s average yearly growth rate, enabling investors to assess its long-term profitability. The inception date of all the MarketGrader Model portfolios is December 31, 2007.
- Volatility
- The Annualized Standard Deviation measures the volatility or risk associated with the MarketGrader Model Portfolio’s returns over a 15-year backtesting period. It quantifies the average dispersion of returns around the portfolio’s mean annual return. By annualizing the standard deviation, it provides a standardized measure of risk on an annual basis, allowing investors to assess the portfolio’s volatility over time. A higher annualized standard deviation indicates greater fluctuation in returns, while a lower value suggests more stable performance. This metric helps investors understand and manage the potential risk associated with the portfolio. The inception date of all the MarketGrader Model portfolios is December 31, 2007.
- Return / volatility
- The Return/Standard Deviation is a measure that assesses the MarketGrader Model Portfolio’s performance relative to its volatility over a 15-year backtesting period. It is calculated by dividing the portfolio’s annualized return by its annualized standard deviation. The inception date of all the MarketGrader Model portfolios is December 31, 2007.
- This ratio provides insight into the portfolio’s risk-adjusted returns, taking into account the level of risk or volatility that investors had to tolerate to achieve those returns. A higher Return/Standard Deviation ratio indicates a more favorable risk-return tradeoff, suggesting that the portfolio generated higher returns per unit of risk. On the other hand, a lower ratio may indicate that the portfolio’s returns were not sufficient given the level of volatility experienced.
- By considering both returns and risk, the Return/Standard Deviation ratio helps investors evaluate the efficiency and consistency of the portfolio’s performance. It enables them to compare the risk-adjusted returns of the MarketGrader model portfolio against other investment options and make informed decisions based on their risk tolerance and return objectives.
How It Helps You
With our 300-stock Core Portfolio, we’re aiming to give you a better-performing alternative to the time-honored S&P 500 index fund. The Core Portfolio doesn’t chase outperformance by taking a lot of risk, like an actively managed fund might. Instead, it's designed to deliver moderately better performance over a multi-year horizon while keeping risk in a similar range as the index. Better returns for similar risk is practically the definition of good investing -- and we believe MarketGrader's Core Portfolio gives you a good chance of getting it.
Who It's For
Investors of all kinds like the risk/return balance that the Core portfolio offers. It makes a great equity building block, especially when paired with BBAE's Fixed Income portfolio.
Keep In Mind
Smart beta portfolios are specifically designed to serve as diversified building blocks within your investment portfolio. In the realm of smart beta, "success" typically translates to achieving moderately improved risk-adjusted returns compared to the overall market. It is worth noting that smart beta strategies may exhibit higher standard deviations (a measure of risk) compared to their respective benchmarks. However, the metric of return per unit of standard deviation is often considered more crucial when evaluating their performance.
Fees
The fee structure at BBAE is a flat rate of 0.50% per annum of assets under management (AUM). This fee applies to all portfolios, regardless of their specific investment strategy or composition, and covers all brokerage transaction fees and rebalancing services for your portfolio. We prioritize transparency and simplicity in our fee structures, ensuring that there are no surprises or hidden charges.
