Smart Beta portfolios

Smart Beta describes a set of rules-based investment strategies. 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. Portfolios are managed by IBKR Asset Management's Chief Investment Officer and Investment Management team.

Why Smart Beta?

There are many reasons to consider IBKR Asset Management Smart Beta Portfolios:

Robust process

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

Easy of buying

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

Low fees

Industry low basket commissions and low management fees of 0.08%.

Fractional shares

Own a diversified basket of stocks at a low minimum investment of just $5,000.

Balanced portfolios

All portfolios are set to rebalance automatically on a regular basis.

Smart Beta portfolio comparison

See how some key characteristics of investing in our Smart Beta Portfolios compare to buying shares of ETFs 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 IBKRAM
Active management N/A

Partial

Alpha expectations N/A
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 Low 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 IBKRAM confirms that investing in one of these portfolios is appropriate for a client’s investment profile
Disclosures:
  1. These portfolios mainly invest in stocks and may not be suitable for all investors.
  2. Past performance is no guarantee of future results. Be aware that you can lose all or part of investments in these portfolios.
  3. 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 IBKRAM’s full disclosures) on the Forms and Agreements page at ibkram.com. IBKRAM Ltd. is an SEC-registered investment adviser.
  4. Registration does not imply a certain level of skill or training. Brokerage services are provided to IBKRAM clients by Interactive Brokers LLC, an SEC-registered broker-dealer and member NYSE, FINRA and SIPC.