The Alpha Architect Investment Model Portfolio

Why It Matters

The design gives advisors a turnkey, evidence-based portfolio that blends passive market exposure with factor alpha and explicit crash hedges, potentially improving after-tax returns, client retention, and downside protection. It formalizes a risk-managed, repeatable solution for advisors seeking differentiated, defensible allocations.

Summary

Alpha Architect’s model portfolio is a two-sleeve strategy combining a factor-enhanced global equity allocation with a crash-aware diversifier sleeve designed for advisors. The equity sleeve pairs broad market-cap beta (US, developed international, emerging) with concentrated value and momentum ETFs (QVAL, QMOM, IVAL, IMOM) to boost return potential and reduce factor correlation. The overall equity weights are 39% US beta, 18% developed international beta, 5% emerging markets, 13% QVAL, 13% QMOM, 6% IVAL and 6% IMOM. The diversifier sleeve splits 50/50 to address fast and slow drawdowns—notably 25% intermediate Treasuries and 25% the CAOS tail-risk ETF—aiming to provide protection in sudden crashes and resilience in prolonged selloffs.

Original Description

For more current information and standardized returns head to funds.alphaarchitect.com

What if a model portfolio could do more than just allocate assets? For advisers looking to grow and scale their business, an evidence-backed model portfolio could differentiate their firms from the competition. In this video, Jack breaks down the philosophy behind the Alpha Architect Model Portfolio and explains how its unique structure seeks to help advisors build more robust portfolios for clients across a wide range of market environments. From combining global market beta with value and momentum factors, to constructing a diversifier sleeve built for both fast and slow equity drawdowns, this video walks through the principles driving the portfolio construction process.

Disclosures:

https://www.alphaarchitect.com/disclosures