We launched TradeKing Advisors as an alternative to the traditional-advisor model, offering convenient access, automation, sophisticated investment strategies, competitive fees, and transparency. We believe transparency is a key tenant of the overall investment process, and one that is seriously lacking in an industry that is by-and-large opaque. That’s why today we’re very pleased to share our first installment of TradeKing Advisors portfolio returns.
The charts below include both actual portfolio returns since our public launch in Q2 2014, as well as historical returns dating back to January 2011. This helps you, the investor, to put our actual returns into a broader historical context, as well as compare how Core and Momentum portfolios would’ve performed over this timeframe. We encourage you to read our disclosures for more information on our methodology.
A few tips to help you explore this data:
First, select Core or Momentum at the top. Then add or remove portfolios by selecting them at the bottom of the chart. To review quarterly portfolio values, hover over the equity lines. You’ll find additional performance data in the table itself. (We’ve included a screenshot here for reference, but we invite you to explore the full chart on our homepage.)
Our portfolios are globally diversified, utilizing up to 20 different asset classes to maximize potential return for your risk tolerance. As explored in a previous post, diversification can reduce overall portfolio risk because stocks and bonds generally do not react identically during changing market conditions. Of course, while diversification can never eliminate risk entirely, by investing in a diversified mix of investments, investors may be able to insulate their portfolios from the extreme downswings inherent to any one single investment.
This is important to remember as you review our portfolio results, as a question we often hear from clients is, “How have your portfolios fared vs. the S&P 500?” While it’s a seemingly logical comparison, over the long run one expects a more risky investment, such as stocks, to outperform a less risky diversified portfolio of stocks and bonds. However, one of the main advantages of diversification is reducing risk, not necessarily increasing return over any single asset class. We’ve partnered with a leader in independent investment management, Ibbotson Associates, a Morningstar Company, to create diversified portfolios uniquely for our clients.
At TradeKing Advisors, we believe you deserve more and better. We’ve made a good-faith effort to demonstrate how our portfolios would’ve performed historically, giving you long-term context for your investment decisions. And we’re standing ready to answer all your questions.
Isn’t it time to put your uninvested cash to work? From tax refunds to money idling in a checking account, it takes only 15 minutes to get started with a TradeKing Advisors account. We streamline the process to make quality investing simple, convenient, affordable and effective. Plus you can still take advantage of our launch offer: no advisor fees for a full year, starting from the date you open your account. Do yourself a favor and put your long-term financial plan into action today.