Index Tracker Portfolios

An index tracker portfolio is designed to follow certain predefined rules so that the portfolio can track the specified basket of underlying investments of the reference index. It aims to track the performance of the underlying basket of the index, and is typically a form of passive investing.

Benefits of our Index Tracker Portfolios

Low fees

Low fees

Industry low
0.20%
management fee

Transparent
 

Transparancy

See positions and
trades online at
any time

Fractional
shares

Fractional shares

Diversification at
low investment
minimums

Ease of
buying

Ease of buying

Buy and sell easily
online and
by phone

Rebalanced
for you

Auto rebalance

Auto rebalancing
your account
every quarter

IB Asset Management’s Index Tracker Portfolios are based on data provided by:

FTSE Russell

Widely used and trusted - According to FTSE Russell, the top ten investment banks, 97 out of 100 of the top asset managers, 48 out of 50 of the top plan sponsors and the top five global custodians all trust FTSE Russell to benchmark their investment performance and create ETFs, index funds, structured products and index-based derivatives.

Currently, a diverse selection of index tracker portfolios based on data obtained pursuant to a licensing agreement with FTSE-Russell are offered at Interactive Brokers Asset Management:

  • Sector
  • Dividend growth
  • Mega captialization

These are the Index Tracker Portfolios IB Asset Management offers at this time:

Russell Top 200 Managed Portfolio
The Russell Top 200 Managed Portfolio seeks to invest in the top 200 large-capitalization US equities.
Russell 1000 Dividend Growth Managed Portfolio
The Russell 1000 Dividend Growth Managed Portfolio seeks to invest in the top large-capitalization US. dividend equities within the Russell 1000 index.
Russell 3000 Dividend Growth Managed Portfolio
The Russell 3000 Dividend Growth Managed Portfolio seeks to invest in the top US dividend equities within the Russell 3000 index.
FTSE NAREIT All Equity REITs Managed Portfolio
The FTSE NAREIT All Equity REITs Managed Portfolio seeks to invest in commercial real estate space across the US economy with exposure to all investment and property sectors.
Russell 1000 Consumer Discretionary Managed Portfolio
The Russell 1000 Consumer Discretionary Managed Portfolio invests in stocks of companies that manufacture products and provide services that consumers purchase on a discretionary basis.
Russell 1000 Consumer Staples Managed Portfolio
The Russell 1000 Consumer Staples Managed Portfolio invests in stocks of companies that provide direct-to-consumer products that, based on consumer spending habits, are considered non-discretionary.
Russell 1000 Energy Managed Portfolio
The Russell 1000 Energy Managed Portfolio invests in stocks of companies involved in the exploration and production of energy products such as oil, natural gas, and coal.
Russell 1000 Financial Services Managed Portfolio
The Russell 1000 Financial Services Managed Portfolio invests in stocks of companies that provide financial services.
Russell 1000 Health Care Managed Portfolio
The Russell 1000 Healthcare Managed Portfolio invests in stocks of companies involved in providing medical or health care products, services, technology, or equipment.
Russell 1000 Materials and Processing Managed Portfolio
The Russell 1000 Materials and Processing Managed Portfolio invests in stocks of companies that extract or process raw materials.
Russell 1000 Producer Durables Managed Portfolio
The Russell 1000 Producer Durables Managed Portfolio invests in stocks of companies that manufacture products and provide services that consumers purchase on a discretionary basis.
Russell 1000 Technology Managed Portfolio
The Russell 1000 Technology Managed Portfolio invests in stocks of companies that serve the electronics and computer industries or that manufacture products based on the latest applied science.
Russell 1000 Utilities Managed Portfolio
The Russell 1000 Utilities Managed Portfolio invests in stocks of companies that distribute electricity, water, or gas, or that operate as independent power producers.

How we run the Index Tracker Portfolios

IB Asset Management runs these portfolios by managing a firm-owned account that invests in the assets underlying the specific index corresponding to each portfolio. IB Asset Management then replicates this trading in the accounts of clients investing in one or more of these portfolios. The index composition and quarterly rebalancing data is obtained under a licensing agreement by FTSE International Limited (“FTSE”) and the Frank Russell Company (“Russell”).

Important information

  1. Nothing on this page should be construed as a solicitation or offer or recommendation to buy or sell any security or as an attempt to provide any investment advice. Investment advice is only provided to investors who become clients pursuant to an investment management agreement. Interactive Brokers Asset Management (“IB Asset Management”) is the trade name of Covestor Ltd, an investment adviser registered with the Securities and Exchange Commission.
  2. Past performance is no guarantee of future returns. These portfolios mainly invest in stocks and may not be suitable for all investors. All investments, including those in any of these portfolios, involve the risk of loss, including loss of principal and a reduction in earnings. Clients may lose all or part of their investments in these portfolios.
  3. There is not guarantee or assurance that the methodology used to create the reference indices will result in these Portfolios achieving high or even positive returns. The indices upon which the portfolios are based may underperform and could lose value while other indices could increase in value. While IB Asset Management aims to track the reference index for each of these portfolios as closely as possible and mimic the performance of each index, it makes no guarantee that it will succeed in doing so, or that it will achieve the same performance for clients as the account managing each portfolio has achieved. Those considering investments in these portfolios should note that there may be similar offerings in the marketplace (i.e., portfolios or investments seeking to track the same index), which may charge lower management fees.
  4. IB Asset Management manages these portfolios by trading its own funds and replicating this trading in the accounts of investing clients. Clients may restrict any of the stocks or other 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, i.e., worse or better, than IB Asset Management’s account managing the portfolio or other client accounts invested in the same portfolio.
  5. Clients’ investments in these portfolios are made up of whole and fractional holdings of stocks and/or other securities. By investing in these portfolios, clients are not investing in ETFs, mutual funds or the underlying index. Investing clients own the individual whole and fractional shares of the stocks or securities composing the portfolio based on the reference index.
  6. IB Asset Management constructs and manages these portfolios based on data obtained pursuant to licensing agreements with FTSE and Russell and remits a portion of the management fees charged to clients for investments in these portfolios to FTSE and Russell. These portfolios are not in any way sponsored, endorsed, sold, promoted or recommended by FTSE International Limited (“FTSE”), the Frank Russell Company (“Russell”) or the London Stock Exchange Group companies. FTSE and Russell do not provide any investment advice or recommendation in relation to any index to IB Asset Management or its clients. The indices are calculated by FTSE and Russell. The index names are trademarks of FTSE and Russell and have been licensed for use by IB Asset Management.
  7. Under the governing licensing agreements, FTSE and Russell may alter, amend, terminate or change the indexes, change the composition or method of calculation of the index or data, suspend or interrupt providing data to IB Asset Management and have no obligation to take the needs of IB Asset Management or its clients into account when determining, modifying or terminating any of of the indexes. FTSE, Russell and IB Asset Management may also terminate the governing licensing agreements upon one month written notice. IB Asset Management will notify all affected clients of any such termination as soon as possible to allow them to identify suitable alternative investments on the IB Asset Management platform or elsewhere. Those considering investing in these portfolios should bear these limitations in mind when deciding whether to invest in these portfolios which may become unavailable in the future.
  8. Returns for the reference indices corresponding to each portfolio for time periods preceding January xx, 2018 (these portfolios’ launch date) inclusive (gross) of management fees and commissions may be viewed on the index provider’s website. These index returns do not reflect the results of actual trading of investable assets or have any relation to the performance of these portfolios after their January xx, 2018 launch date. An index cannot be invested in directly and index returns are provided for informational and illustrative purposes only. Because index returns do not reflect the deduction of any management fees, transaction costs or expenses or relate to the performance of these portfolios, clients should carefully review these index returns and bear in mind that any investments tracking the index, such as those in any of IB Asset Management’s Index Tracker Portfolios, will be lower than these returns by the amount of management fees, transaction costs and other expenses that they will have to pay for investments in these portfolios. Please refer to the index provider’s website for complete details on each index. Links to fact sheets compiled by the index provider for the indices these portfolios track are also provided on the individual portfolio pages. A decision to invest in these portfolios should not be made in reliance on the information in these fact sheets.
  9. In addition to IB Asset Management’s management fees, clients will be charged commissions for the trades in these portfolios by Interactive Brokers LLC, IB Asset Management’s affiliated broker-dealer, which is a conflict of interest.
  10. Detailed information on the risks, conflicts of interest, applicable brokerage commissions, fractional shares, and limitations on investments and divestments associated with these portfolios (along with IB Asset Management’s full disclosures) is provided here and on the Forms and Agreements page. Additional information on the performance, composition and construction process for these portfolios may be found on each index tracker portfolio page.
  11. IB Asset Management’s management of these portfolios and some of the information on this page relies on data from third-party sources, including FTSE and Russell. While IB Asset Management 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.