Interactive Advisors · investment strategy
by Interactive Advisors
The Growth portfolio offers a systematic way to invest in large and mid-sized U.S. companies that demonstrate strong earnings expansion potential. Using a disciplined, rules-based framework, it scores stocks relative to their sector peers and gives greater emphasis to those with compelling growth profiles. This approach aims to capture the upside of growth-oriented equities while maintaining thoughtful diversification across sectors and individual holdings.
Description from Interactive Advisors
of the return and risk figures:as the source publishes them
What $10,000 would have become, from the strategy's own published history, against the S&P 500 over the same dates. The basis is labelled.
Each rule is quoted word for word from the strategy's own documents.
“In certain situations, such as mergers, acquisitions, or other corporate actions, the portfolio may sell or adjust positions outside of the regular quarterly rebalance cycle.”
“target 300 long positions weighted by factor attractiveness”
“The portfolio targets approximately 300 individual stock positions”
“the selection process considers both historical and projected earnings growth to assess each company's potential”
“Positions are reviewed and refreshed on a quarterly basis”
“the construction process reduces exposure to highly volatile stocks”
“limits concentration in any single sector”
“large and mid-sized U.S. companies”
“US-listed equities”
“Stocks with stronger growth ratios receive larger allocations”
No published holdings for this strategy.
Fitted to 252 returns (live) from 2025-10-30 to 2026-10-16. An estimate, not holdings: it can't name stocks.
· : 0.85 · Too loose a fit for a verdict; shown as a guide.
Beta to the S&P 500: 0.80 (90%: 0.68 to 0.89)
Compares the stated rules with the holdings (or, where none are published, a mix estimated from returns), using tests fixed before any results were seen.
No holdings on file, so nothing to test.
Strategies that share its Factor / smart beta label, from other sources first, strongest risk-adjusted return first.
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How much of what we look for this strategy has, and why anything is missing. Fields that don't apply to it aren't counted.
2 missing
Rebalance schedule taken from a stated rule.
The text the rules are quoted from, with where it came from.
Value/Growth/Quality/Dividend target 300 long positions weighted by factor attractiveness; Broad Market targets 1,000 long positions, blend of equal and cap weight
Item 4 says IA offers 15 Smart Beta Portfolios in total; Item 8 describes ten (5 large plus 5 small-cap versions) plus 5 ESG versions. The portfolios are traded in firm-owned accounts and mirrored to clients.
The Growth portfolio offers a systematic way to invest in large and mid-sized U.S. companies that demonstrate strong earnings expansion potential. Using a disciplined, rules-based framework, it scores stocks relative to their sector peers and gives greater emphasis to those with compelling growth profiles. This approach aims to capture the upside of growth-oriented equities while maintaining thoughtful diversification across sectors and individual holdings.
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.
Capital growth with a similar risk profile to broad equity markets. Investing in equities and prepared to accept fluctuation in portfolio value.
Growth-focused investors: This portfolio is designed for investors who want targeted exposure to companies with above-average earnings growth across the large and mid-cap segments of the US equity market. Discipline-driven investors: Investors who prefer a systematic, repeatable approach over subjective stock picking may appreciate the structured framework that guides all allocation and rebalancing decisions. Risk-aware growth seekers: For those who want growth exposure but also value safeguards like volatility controls and sector diversification limits, this portfolio aims to balance ambition with prudent risk management.
Research: The portfolio's construction draws on academic research into factor-based investing, which studies how specific company traits can influence long-term returns. Interactive Advisors conducted extensive research and back-testing to identify the growth-related factors and rules that guide stock selection. The goal is to pursue a risk-return balance that may differ meaningfully from a traditional market-cap-weighted index like the S&P 500. Approach: The portfolio follows a quantitative framework that applies predefined rules to determine which stocks to include and how much weight each one receives. Positions are reviewed and refreshed on a quarterly basis, ensuring the portfolio consistently reflects current growth signals. Companies that display favorable growth traits have a higher likelihood of being selected during each rebalance. Allocation discipline: The portfolio targets approximately 300 individual stock positions, providing broad diversification across the U.S. equity market. Stocks with stronger growth ratios receive larger allocations, and the selection process considers both historical and projected earnings growth to assess each company's potential. As an added layer of risk management, the construction process reduces exposure to highly volatile stocks and limits concentration in any single sector. Sell discipline: Sell decisions follow the same systematic, rules-based process that governs the rest of the portfolio. During each quarterly rebalance, stocks that no longer rank favorably on growth measures are replaced by those with stronger growth profiles. Exceptions: In certain situations, such as mergers, acquisitions, or other corporate actions, the portfolio may sell or adjust positions outside of the regular quarterly rebalance cycle.
Systematic growth selection: A quantitative process removes emotional bias from stock selection, systematically directing capital toward companies that stand out for their earnings growth potential. Built-in risk guardrails: The portfolio is designed to temper volatility and avoid overexposure to any one corner of the market, helping balance the pursuit of growth with prudent diversification. Forward and backward lens: Allocation decisions consider both proven historical results and analyst expectations for future earnings, capturing companies with strong track records alongside those poised for continued expansion.
Every value on file, each labelled with its calculation basis and as-of date.
| Asset classes / instruments | equities | 2026-10-09 | |
| Composition (ETFs / Stocks / Mixed) | STOCKS | 2026-10-09 | |
| ESG / responsible flag | No | 2026-10-09 | |
| Smart beta flag | Yes | 2026-10-09 | |
| Theme keywords (Interactive Advisors) | Growth oriented, Large-cap, Mid-cap | 2026-10-09 |
| Rebalancing (methodology text) | Auto-rebalanced quarterly |
| Management / advisory fee | 0.20% | 2026-10-09 | |
| Minimum investment | $100 | 2026-10-09 |
| Metrics calculated through | 2026-10-09 | 2026-10-09 |
| Program in the firm's Form ADV brochure | url: https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=1024287 · name: Interactive Advisors Smart Beta Factor Portfolios · covers: 5 · source_key: interactive_advisors|1 · original_name: Smart Beta Portfolios: Value, Growth, Quality, Dividend, Broad Market |
| Benchmark (methodology text) | Objective: exceed returns of market-cap-weighted indices such as the S&P 500 |
| Annualized return since inception (Lighthorse, daily, live) | 11.26% | 2026-10-16 | |
| Calendar-year returns (live account) | 2017: 20.8% · 2018: -10.5% · 2019: 33.3% · 2020: 14.3% · 2021: 19.2% · 2022: -20.6% · 2023: 24.8% · 2024: 15.0% · 2025: 9.7% | 2026-10-09 | |
| Return since inception (annualized) (live account) | 11.30% | 2026-10-09 | |
| Return since inception (cumulative) (live account) | 189.60% | 2026-10-09 | |
| Return vs the source's benchmark, last 365 days (Lighthorse, daily, live) | 17.90% | 2026-10-16 | |
| Return, last 30 days (live account) | -2.60% | 2026-10-09 | |
| Return, last 365 days (Lighthorse, daily, live) | 12.79% | 2026-10-16 | |
| Return, last 365 days (live account) | 10.50% | 2026-10-09 | |
| Return, last 5 years (cumulative) (live account) | 45.50% | 2026-10-09 | |
| Return, last 90 days (live account) | -1.00% | 2026-10-09 | |
| Return, year to date (live account) | 8.60% | 2026-10-09 |
| Beta vs the source's benchmark, last 365 days (Lighthorse, daily, live) | 0.58 | 2026-10-16 | |
| Maximum drawdown since inception (Lighthorse, daily, live) | -36.78% | 2026-10-16 | |
| Maximum drawdown, last 365 days (Lighthorse, daily, live) | -10.48% | 2026-10-16 | |
| Maximum drawdown, last 365 days (live account) | -10.50% | 2026-10-09 | |
| Sharpe ratio since inception (Lighthorse, daily, live) | 0.50 | 2026-10-16 | |
| Sharpe ratio, last 365 days (Lighthorse, daily, live) | 0.68 | 2026-10-16 | |
| Sharpe ratio, last 365 days (live account) | 0.53 | 2026-10-09 | |
| Sortino ratio, last 365 days (Lighthorse, daily, live) | 0.99 | 2026-10-16 | |
| Sortino ratio, last 365 days (live account) | 0.88 | 2026-10-09 | |
| Value-at-risk 95% 1-week, last 365 days (live account) | -3.10% | 2026-10-09 | |
| Volatility since inception (Lighthorse, daily, live) | 19.29% | 2026-10-16 | |
| Volatility, last 365 days (Lighthorse, daily, live) | 12.90% | 2026-10-16 | |
| Volatility, last 365 days (live account) | 13.40% | 2026-10-09 |
| Risk label (Interactive Advisors) | Growth | 2026-10-09 | |
| Risk score 1-5 (Interactive Advisors) | 2 | 2026-10-09 | |
| Risk score description | Capital growth with a similar risk profile to broad equity markets. Investing in equities and prepared to accept fluctuation in portfolio value. | 2026-10-09 |
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