Build Alpha Architect Robust Portfolio With ETFs

What is the Alpha Architect Robust Portfolio?

The Alpha Architect Robust Portfolio portfolio can be built with 8 ETFs. It is exposed to 90% equities. It has an allocation to momentum stocks.

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What is the historical return of the Alpha Architect Robust Portfolio?

Below you can see the historical return of the Alpha Architect Robust Portfolio.

Portfolio data was last updated on 11th of August 2023, 08:35 ET

NameYear to dateReturn in 202210 year returnCAGR since 1989 (%)Draw DownExpense ratioYield
Alpha Architect Robust1.64-10.977.529.47-29.320.24%2.33
Portfolio Performance for Alpha Architect’s Portfolio

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.

NameSee PortfolioYear to dateReturn in 202210 year returnCAGR since 1989 (%)Draw Down
Ben Stein RetirementComing soon!4.05-18.039.4610.8-35.42
Paul Merriman 4-Fund-PortfolioComing soon!9.22-11.9811.2510.38-35.26
S&P 500Coming soon!17.09-18.1912.5210.28-37.63
Paul Merriman Target Date Portfolio (25 year old)Coming soon!6.63-13.088.2810.2-36.46
Scott Adams Dilbert PortfolioComing soon!10.87-18.757.010.19-44.88
JL Collins, Simple Path To Wealth, Wealth Building PortfolioComing soon!16.6-19.5112.0810.19-37.0
American Institute of Individual Investors (AAII) PortfolioComing soon!3.74-13.919.710.16-40.85
Paul Merriman Target Date Portfolio (35 year old)Coming soon!6.57-13.228.3110.08-36.35 Portfolio 14Coming soon!6.95-16.947.599.99-37.91
Balanced Portfolio 90/10Coming soon!14.83-18.8711.039.84-32.78
The 10 Best Performing 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 these three books.

Alpha Architect 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

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]( E2%80%93French_three-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.

Asset allocation for Alpha Architects Robust portfolio

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)

Where can I learn more about Alpha Architect?

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

If you have already committed to a portfolio then maybe you need help maintaining the portfolio. In this case 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.