BBAE and MarketGrader Join Forces To Launch Smart Beta Portfolios

United States - October 29, 2023 —

BBAE, a U.S.-based investment management platform that serves individual investors through its mobile investing application, is thrilled to announce a strategic partnership with MarketGrader, a pioneer in smart beta indexes, to introduce a suite of      model portfolios of U.S. stocks. MarketGrader’s Smart Beta Model Portfolios were designed to achieve superior risk-adjusted returns by identifying and owning the highest quality companies in the U.S.      

The partnership between BBAE and MarketGrader brings together the expertise of two industry leaders to create three distinct smart beta portfolios:

1. The BBAE MarketGrader Core Portfolio: The Core portfolio, consisting of 300 stocks, is designed to work as the backbone of a strategy focused on long-term capital appreciation. It blends large-, mid-, and small-cap stocks optimally to balance maximum returns without taking unnecessary risks at the company or portfolio level. The Core portfolio is benchmarked to the S&P 500 Index, and like BBAE’s other smart beta portfolios, it can be paired with a BBAE Fixed Income model inside BBAE’s MyAdvisor platform.
2. The BBAE MarketGrader Growth Compounding Portfolio: Designed for investors willing to take slightly more risk than the Core portfolio, the Growth Compounding Portfolio blends a higher percentage of mid- and small-cap companies with a large-     cap portfolio that rewards growth-oriented companies. It is benchmarked to the S&P 500 Index.
3. The BBAE MarketGrader Growth and Income Portfolio: The 100-stock Growth and Income Portfolio is designed for investors who are looking for steady dividend payments from their equity portfolio without giving up long-term capital appreciation. The yield-weighted Growth and Income Portfolio targets a 4.5% to 5% annual dividend return, in addition to a price return that seeks to match, at a minimum, the market’s beta return. The portfolio’s target dividend yield is well in excess of the S&P 500’s average dividend yield.  The portfolio is benchmarked to the Dow Jones Select Dividend Index.

This partnership leverages MarketGrader’s extensive experience in equity research and its innovative fundamental analysis system, which rates every investable company in the U.S. using a proprietary 24-factor methodology that rewards companies with sustainable growth that trade at reasonable prices. MarketGrader’s daily rating of all U.S. stocks determines the selection of constituents to its smart beta indexes, which form the building blocks of its smart beta portfolios. BBAE creates investable portfolios that track the MarketGrader Smart Beta Model Portfolios and which automatically rebalance every six months, and can be purchased in a single transaction. In contrast to index funds, BBAE’s managed account structure lets investors own the shares (including fractional shares) of each security in the portfolio directly, providing full transparency.

“We’re excited to introduce a game-changing series of smart beta portfolios in partnership with MarketGrader,” said Barry Freeman, CEO of BBAE. “These portfolios represent a new era of investment strategies. We’re hoping to give investors a better alternative to traditional index ETFs, in a structure that gives full transparency about each holding, and which investors can buy with a single click and minimum account size of just $2,000. We are confident that our collaboration with MarketGrader will better empower BBAE’s clients to achieve their financial goals.”

“The MarketGrader Smart Beta Model Portfolios, now available to BBAE clients, represent the ultimate expression of our goal to empower investors with tools to build lasting wealth,” said Carlos Diez, Founder & CEO of MarketGrader. “Our methodology is grounded on the belief that consistent creators of economic value are the best generators of long-term shareholder value, and our tireless mission is to help investors find and own such companies.”

The BBAE MarketGrader smart beta portfolios aim to provide investors with a smarter way to build their financial future. For more information on these portfolios, please visit bbae.com/portfolios.

About BBAE:

BBAE is a U.S.-based investment management platform that serves individual investors through its mobile investing platform. BBAE is committed to providing trading, research, and wealth management services to individual investors through the BBAE Pro app, as well as digital investing solutions and APIs to institutional partners.

About MarketGrader:

MarketGrader provides fundamentals-based equity and ETF research and smart beta indexes to individual, professional, and institutional investors globally. Its proprietary 24-factor model applies a unique growth-at-a-reasonable-price (GARP) + Quality approach to rate more than 40,000 public companies listed in more than 100 exchanges across 93 countries around the world. Learn more at www.MarketGrader.com.

Contact Info:
Name: Media Relations
Email: Send Email
Organization: BBAE
Website: https://www.bbae.com/

Release ID: 89111509

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