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Smart Beta portfolios

Smart Beta describes a set of rules-based investment strategies.

Why Smart Beta?

The goal is to achieve an alternative risk-return profile which is more attractive than a simple capitalization-weighted index such as the S&P 500. Interactive Advisors offers a range of Smart Beta portfolios managed by our Chief Investment Officer and Investment Management team. There are many reasons to consider Interactive Advisors Smart Beta Portfolios:

Robust creation process

Constructed with thoroughly back-tested rules to avoid human biases of over- and under-reaction with the goal of achieving alpha.

Easy to buy

Buy and sell investments in these portfolios as easily as you buy and sell stocks.

Low fees

Low annual management fees. There are no trading commissions.

Fractional shares

Own a diversified basket of stocks for a low minimum investment of just $100.

Automatic rebalancing

All portfolios are rebalanced automatically for you on a quarterly basis.

Smart Beta portfolio comparison

See how some key characteristics of investing in our Smart Beta Portfolios compare to buying shares of Exchange Traded Funds or active mutual funds, including funds that we believe have similar investment strategies. Examples presented below include ETFs and mutual funds that have significant assets under management, are liquid and have exposure to factors like dividends, value and growth.

	Index ETFs	Smart ETFs	Active Mutual Funds	Interactive Advisors
Active management	N/A	close	check	check Partial
Alpha expectations	N/A	check	check	check
Portfolio transparency	Disclose positions daily	Disclose positions daily	Disclose positions quarterly	Real-time access to view positions
Trading and pricing	Intra-day pricing	Intra-day pricing	Mutual fund shares priced once/day after the markets close.	Intra-day pricing
Transaction costs	Brokerage commissions	Brokerage commissions	Portfolio brokerage commissions	No commissions
Risk of NAV trading	May occur	May occur	No risk with open-end funds	No risk
Liquidity/bid-ask spreads	Depends on both compositions and trading volume of the underlying ETF	Depends on both compositions and trading volume of the underlying ETF	N/A	Depends only on compositions, clients buying and selling any fractional shares from/to the liquidity provider
Customization	close	close	close	Interactive Advisors confirms that investing in one of these portfolios is appropriate for a client’s investment profile

Disclosures

These portfolios mainly invest in stocks and may not be suitable for all investors.

Past performance is no guarantee of future results. Be aware that you can lose all or part of your investments in these portfolios.

You can find additional information on the risks, conflicts of interest, applicable brokerage commissions, fractional shares, and limitations on investments and divestments associated with these portfolios (along with Interactive Advisors full disclosures) on the Forms and agreements page. Interactive Advisors Ltd. is an SEC-registered investment advisor.

Registration does not imply a certain level of skill or training. Brokerage services are provided to Interactive Advisors clients by affiliate Interactive Brokers LLC, an SEC-registered broker-dealer and member NYSE, FINRA and SIPC.

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