What is the Alpha Architect Robust Portfolio?
Alpha Architect Robust Portfolio portfolios can be built with 8 ETFs. It is exposed to 90% equities. It has an allocation to momentum stocks. It is a high-risk portfolio.
For the past 10 years, the Alpha Architect Robust Portfolio has returned 10.05 with a standard deviation of 11.71. The dividend yield is 2.14%. The 30-year return is 10.16%. Year to date the Alpha Architect Robust Portfolio has returned -9.45%.
- What is the historical return of the Alpha Architect Robust Portfolio?
- How does the Alpha Architect Robust portfolio compare to the best portfolios?
- Alpha Architect Robust Portfolio, Momentum Winner
- Description of the Alpha Architect Robust portfolio
- How do you build the Alpha Architect Robust portfolio with ETFs?
- Resources for the Alpha Architect Robust portfolio
- Suggestions for your next steps
What is the historical return of the Alpha Architect Robust Portfolio?
Below you can see the historical return of the Alpha Architect Robust Portfolio.
Data was last updated on July 31, 2022 at 08:29 a.m. ET
|Name||Asset class count||Year to date||Return in 2020||10 year return||CAGR since 1989 (%)||Risk level||Expense ratio|
|Alpha Architect Robust||8||-9.45||9.3||10.05||10.16||3||0.24%|
How does the Alpha Architect Robust portfolio compare to the best portfolios?
Below you can see the returns of the best portfolios that we have benchmarked.
Alpha Architect Robust Portfolio, Momentum Winner
Wes Gray and Jack Vogel over at Alpha Architect constructed this portfolio. Alpha Architect employs mainly a tactical approach for portfolio construction. Alpha Architect has enjoyed a great deal of success because of their stock selection methodology, which they have documented in several places. Among these are the three books
- DIY Financial Advisor: A Simple Solution to Build and Protect Your Wealth
- Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors
- Quantitative Momentum: A Practitioner’s Guide to Building a Momentum-Based Stock Selection System
They are all three exceptionally well researched and all evidence-based approaches that go beyond the buy and hold methodology. Their books are a nerd’s heaven.
Alpha Architect has entered the ETF business and has launched several ETFs based on their methodologies.
Description of the Alpha Architect Robust portfolio
The portfolio comes from mebfaber.com.
The Alpha Architect Robust portfolio is one of the very few portfolios that tilt towards momentum.
Momentum is one of the factors that contribute to stocks returns. Other factors include market risk, size, value, and quality. This goes back to the Fama-French 3-factor model.
Mark Carhart demonstrated the momentum factor in his paper On Persistence in Mutual Fund Performance.
The Alpha Architect Robust portfolio is also tilted towards value and small-cap. The portfolio covers 4 of the 5 factors setting it up for some excellent performance.
We like the portfolio a lot but there is one thing we don’t like.
The thing we don’t like is the 10% allocation to commodities. Commodities is a non-income producing asset class destined to decrease in value over time. Therefore we don’t recommend that you use commodities or precious metals like gold in your portfolio.
How do you build the Alpha Architect Robust portfolio with ETFs?
Here is how you build the Alpha Architect portfolio with ETFs.
- 7.5% Large-Cap Value (VTV)
- 7.5% Small-Cap Value (VIOV)
- 10% REITs (VNQ)
- 7.5% International Large-Cap Value (EFV)
- 20% Intermediate-Term Treasuries (VGIT)
- 10% Commodities (DBC / GSG)
- 30% Momentum Factor (MTUM)
- 7.5% International Small-Cap Value (DLS)
Resources for the Alpha Architect Robust portfolio
Alpha Architect has an extensive archive of podcasts and videos.
They are nerds and geeks by heart and also have an extensive research section comprising many white papers on investing.
Suggestions for your next steps
Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone
If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Rebalancing lowers your portfolio risk and can increase your returns.
If you want access to our high-performing portfolios then you want to take a look at the premium portfolios. This is a paid product that gives you the 20 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to get more money from your investment portfolios. We think it’s a “no-brainer”.
You stand to gain literally thousands more dollars EACH YEAR for the price of a few months of Netflix. (Haven’t you watched enough Netflix?).