Broad Market

IA Smart Beta

The Broad Market portfolio offers investors broad exposure to large-cap and mid-cap U.S. stocks through a smart beta strategy, a systematic approach that selects and weights holdings using specific investment factors rather than simply tracking a traditional index. By combining market-capitalization weighting with equal weighting, this portfolio aims to reduce concentration in the largest stocks and spread exposure more evenly across roughly 1,000 positions. The result is a diversified core building block for U.S. equity allocation, offered at a relatively low cost.

Portfolio insights

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Smarter weighting, less concentration risk: Unlike traditional indexes that let the biggest stocks dominate, this portfolio balances capitalization-based and equal-weight allocations. This means your investment is spread more evenly across the U.S. equity market rather than being concentrated in a handful of mega-cap names.
Systematic, disciplined precision: Every quarter, a structured algorithm rebalances the portfolio to its target weights. This removes emotional decision-making from the process and delivers consistent, repeatable exposure to large and mid-cap stocks through a transparent methodology.
Broad diversification in a single portfolio: With a target of approximately 1,000 long positions spanning large and mid-cap companies, this portfolio offers extensive market coverage. 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.

Investment suitability

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Diversification seekers: If you want wide exposure to the U.S. stock market without heavy reliance on a few dominant companies, this portfolio spreads your investment across a large number of holdings, reducing the impact any single stock can have on your returns.
Cost-conscious index investors: Designed for investors who appreciate the simplicity of index-style investing but want a smarter approach, this portfolio offers a systematic alternative that aims to improve on traditional capitalization-weighted benchmarks at a relatively low cost.
Steady-hand investors: This portfolio suits those who prefer a disciplined, structured strategy over active stock picking. Quarterly rebalancing keeps allocations aligned with the target methodology, so you can stay invested with confidence in a consistent process.

Methodology

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Research: 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. The weighting methodology is designed to reduce heavy concentration in the very largest stocks and in stocks that may have experienced outsized price run-ups, helping to create a more balanced exposure across the broad market.
Approach: The portfolio uses a systematic, rules-based process to determine how much to allocate to each holding. Specifically, it pairs traditional capitalization weighting with an equal-weight component, tilting the portfolio toward a wider range of companies rather than letting the biggest names dominate. Every quarter, the portfolio is rebalanced to keep allocations aligned with these target weights.
Allocation discipline: The portfolio targets approximately 1,000 long positions across large-cap and mid-cap U.S. stocks. Because allocations incorporate both equal weighting and capitalization weighting, smaller companies within the universe receive a larger share than they would in a purely cap-weighted index. This approach helps avoid overconcentration in any single stock or group of stocks, particularly those that may have risen sharply in price.
Sell discipline: Sell decisions follow the same disciplined framework that governs the rest of the portfolio. Each quarter, positions are rebalanced back to their target weights. Holdings that have grown beyond their intended allocation are trimmed, while underweight positions are added to.
Exceptions: Positions in stocks undergoing corporate actions, such as mergers, acquisitions, or spin-offs, may be sold or adjusted outside the regular quarterly rebalance schedule.

Strategy

Smart Beta

Inception

Nov 03, 2016

Annualized return (inception)

12.80%

Portfolio risk score

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Capital growth with a similar risk profile to broad equity markets. Investing in equities and prepared to accept fluctuation in portfolio value.

Management fee

0.20%

Minimum investment

$100

Investment (below min)

Annual costs

Performance Chart

Metrics

Last 30 days	-2.2%
Last 90 days	-0.3%
Last 365 days	15.3%
Last 5 years	59.3%
Since inception (Nov 03, 2016)	207.7%
Since inception (annualized)	12.8%
2026 (YTD)	0.2%
2025	13.7%
2024	18.2%
2023	21.7%
2022	-17.7%
2021	22.4%
2020	19.0%
2019	29.4%
2018	-6.8%
2017	19.2%

Volatility	18.5%
Sharpe ratio	0.74
Sortino ratio	0.97
Maximum drawdown Shows the largest percentage drop in portfolio value from a peak to a subsequent low point over a specific time period, representing your worst-case scenario loss had you invested at the worst possible time and held through the decline. However, this metric is incomplete because it only shows the single worst loss without revealing how often other drawdowns occurred, their frequency, how long losses took to recover, or whether the portfolio ever fully recovered at all.	-13.9%
Value-at-risk (95%, 1 week)	-4.3%

Manager

Interactive Advisors is an established name in the field of online investing, with a history of path-breaking work. The platform offers a variety of portfolios, including the Smart Beta portfolios, which are managed by Interactive Advisors's Chief Investment Officer and Investment Management team.

The “Smart Beta” approach to portfolio construction is grounded in academic research. The goal of this strategy 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 Smart Beta portfolios follow rules-based investment strategies designed to provide systematic exposure to a fundamental factor or combination of factors.

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Disclosures

Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.

This portfolio was launched on Interactive Advisors on November 03, 2016. On that date, Interactive Advisors started trading its own funds in a brokerage account trading this strategy. This portfolio was opened to client investments on November 03, 2016. All performance information on this page is actual performance of the Interactive Advisors proprietary account and presented “net of fees”. The actual performance chart is provided for informational purposes only, and should not be used as the basis for making an investment decision. Actual client returns will differ.

The ESG variants of the Smart Beta and Asset Allocation Portfolios and the Socially Responsible Investing portfolios use an Environmental, Social and Governance (“ESG”) investment strategy. Such a strategy could limit the types and number of investment opportunities available to this portfolio, lead the portfolio to underperform a portfolio without an ESG focus or with a distinct ESG focus, and result in the portfolio investing in securities or industry sectors that underperform the market as a whole or foregoing opportunities to invest in securities that might otherwise be advantageous to invest in. Interactive Advisors could also be unsuccessful in creating a portfolio investing in stocks of companies or ETFs made up of companies that exhibit positive or favorable ESG characteristics and the ETF manager (or the provider of the index the ETF seeks to track) may not succeed in selecting issuers that exhibit positive or favorable ESG characteristics in constructing the ETFs.

Additional information on the risks, conflicts of interest, applicable brokerage commissions, fractional shares, and limitations on investments and divestments associated with this portfolio can be found here and on the Forms and Agreements page.

Important information

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The actual performance of the manager account displayed on this page is based on the performance of an Interactive Advisors proprietary account invested using this strategy and is calculated by Interactive Advisors on a daily time-weighted basis, including cash, dividends and earnings distributions. The actual performance for this portfolio is presented “net of fees” and reflects the deduction of the Interactive Advisors advisory fee, Interactive Brokers LLC brokerage and other commissions (when commissions were charged) and expenses that a client has to pay if he invests in this portfolio after the launch date, but not any fees clients must separately pay the issuers of any ETFs.
We rely on mathematical formulas, computer programs, and pricing information from third-party vendors (e.g., Refinitiv Worldscope database) to provide these returns. Neither Interactive Advisors nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
None of the performance information displayed on this page is based on the actual performance of any Interactive Advisors client account investing in this portfolio. The performance in an Interactive Advisors client account invested in this portfolio may differ (i.e., be lower or higher) from the performance of the account managing this portfolio and portrayed on this page based on a variety of factors, such as trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions (when commissions were charged), and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their Interactive Advisors account and reviewing their customized dashboard.
Not all transactions underlying the performance information displayed on this page will appear in accounts due to Interactive Advisors’ trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
Clients may restrict any of the securities traded in their account, but should note that any restrictions they place on their investments could affect the performance of their account leading it to perform differently, worse or better, than (a) the above-portrayed account managing the portfolio or (b) other client accounts invested in the same portfolio.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Interactive Advisors, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
Interactive Advisors’ management of this portfolio and some of the information on this page relies on data from third-party sources, including third parties providing the model portfolio strategy or ESG score information, as applicable. While Interactive Advisors believes that the data it uses in its investment management processes is obtained from reliable sources, it did not audit or validate this data, which may contain errors.
Benchmark returns displayed in the performance graph upon selection are provided for illustrative purposes only and have been calculated by Interactive Advisors using daily adjusted close prices and include dividend income. Benchmarks available for display are selected based on overall strategy, trade history and other criteria. If you choose to display benchmark returns in the performance graph, be mindful of the fact that the performance, composition and volatility of the portfolio could vary significantly from that of the benchmark(s) available for display. There can be no assurance that a benchmark will remain appropriate over time and Interactive Advisors will periodically review the benchmark’s appropriateness and decide to use other benchmarks if appropriate. More information here. Interactive Advisors uses only investable ETFs as benchmarks. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
Transaction history is available upon request. Portfolio classifications are provided by Interactive Advisors, and are intended to serve as a general guide.
In addition to Interactive Advisors' management fees, clients will also be charged management fees and other expenses (custodian fees, brokerage commissions, and legal and accounting fees) by ETF issuers if the portfolio contains ETFs.
Quarterly, monthly or more frequent rebalances in this portfolio (as applicable) will result in numerous transactions in many or all the stocks or ETFs in the portfolio and the client accounts invested in this portfolio. Clients could be required to report some or all of these periodic rebalance trades on their tax forms. Clients should consult an accountant or tax attorney on tax matters as Interactive Advisors does not provide tax advice or prepare tax documents for its clients. Interactive Brokers LLC provides certain tools to assist you with your tax filings, but these tools may only be able to support a limited number of trades.

How we trade

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Interactive Advisors manages this portfolio by trading its own funds in a separate firm-owned brokerage account and replicating this trading in the accounts of investing clients as follows:

Interactive Advisors initially funds and trades a fixed amount of its own funds in a separate brokerage account associated with this portfolio based on internally generated data;
Interactive Advisors replicates the trading in this brokerage account in the accounts of clients investing in this portfolio in order to implement its replication-based investment process; and
Based on internally generated data, Interactive Advisors periodically rebalances this portfolio to maintain target allocations, resulting in rebalancing transactions in investing clients’ accounts.

How to invest

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To invest in this portfolio, Interactive Advisors clients must:

Sign an Investment Management Agreement with and become clients of Interactive Advisors;
Consent to trading with another Interactive Brokers LLC client who is a liquidity provider in order to be able to buy and sell fractions of ETF shares and stocks, which do not trade on the open market. Interactive Advisors clients may revoke this consent at any time but, if they do, they will no longer be able to invest in this portfolio. (Clients can see these fractional trades with the liquidity provider listed and identified on the periodic activity statements they receive from Interactive Brokers LLC); and
Obtain the minimum risk score required for each portfolio and acknowledge certain risk disclosures.

Broad Market

Performance Chart

Metrics

Performance info

Risk metrics (last 365 days) info

Manager

IA Smart Beta

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Disclosures