IA Smart Beta

Small Cap Broad Market

Managed by IA Smart Beta
Small and mid cap stocks

The Small Cap Broad Market portfolio is a portfolio designed to systematically deliver return and risk characteristics of small cap stocks within the US equity market. The portfolio is implemented using a rules-based approach and offered at a relatively low cost.

Portfolio risk score
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Strategy Smart Beta
Management fee 0.11%
Min investment $100

Performance Chart

Performance Table

Performance

Last 30 days 1.6%
Last 90 days -1.0%
Last 365 days -15.1%
Last 5 years 35.1%
Since inception (Dec 22, 2016) 49.0%
Since inception (annualized) 6.9%
2022 (YTD) -16.9%
2021 19.3%
2020 19.2%
2019 24.0%
2018 -9.7%
2017 13.7%

Risk metrics (last 365 days)

Volatility 27.4%
Sharpe ratio -0.77
Sortino ratio -1.32
Maximum drawdown -25.3%
Value-at-risk (95%, 1 week) -6.3%
Investment (below min)
Annual costs

Portfolio information

Research

The goal is to achieve an alternative risk-return profile, which is more attractive than a simple capitalization-weighted index such as the Russell 2000. The weighting methodology results in a portfolio that has less risk concentration in securities with large price appreciation.

Approach

The portfolio is constructed using a rules-based algorithm to determine position allocations. Allocations are a blend of capitalization weights and equal weights. The portfolio is rebalanced quarterly.

Sell discipline

Sell decisions are based only upon the quarterly rebalance criteria; every quarter the portfolio is rebalanced to target weights.

Exceptions

Positions in stocks undergoing corporate actions may be sold or adjusted. Performance is calculated using then-applicable 0.08% management fee until March 1, 2019, and currently applicable 0.11% management fee as of March 1, 2019.

Portfolio updates

Manager

IA Smart Beta

IA Smart Beta

Interactive Advisors is a pioneer in online investing. Interactive Advisors 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 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 are designed to provide systematic exposure to a fundamental factor or combination of factors.

Portfolios are constructed using a rules-based approach and offered at a relatively low cost.

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 December 22, 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 December 22, 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.

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