Proven strategies that are simple to follow.

"Sound Mind Investing has given me access to a proven
investing method that is simple to follow and will return
the cost of my annual subscription many times over."

Craig Weeks, TX - Member since 2005

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Market Beating Strategies

 

Objective. Time-tested. Successful. These are the attributes that describe SMI’s investment strategies.

No matter where you are on the spectrums of age, wealth, investing experience, or risk tolerance, Sound Mind Investing has a strategy that’s right for you. Each one is based on objective criteria that have proven very effective over the years.

We don’t try to predict where the market is going and we don’t believe in market timing. But we do believe in beating the market, and each of our strategies has a record of doing just that.

To find the best strategy for your circumstances and objectives, click on the Learn More buttons.

"A proven investing method that is simple to follow"

"The Sound Mind Investing newsletter has given me access to a proven investing method that is simple to follow and will return the cost of my annual subscription many times over. The Sound Mind Investing website and message board are a great place to ask investing questions and get great advice from other subscribers."

Craig Weeks
Round Rock, TX

Fund Upgrading

Core Strategy

Based on the idea that recent past performance tends to persist, this “momentum” strategy keeps you in the funds that are currently in favor.

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Just the Basics

Core Strategy

Our simplest strategy, with only annual maintenance needed, Just-the-Basics enables you to own the entire market with index funds.

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Dynamic Asset Allocation

Core Strategy

This low-risk strategy helps you share in some of a bull market’s gains while minimizing or even preventing bear market losses.

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Sector Rotation

Add-on Strategy

This high-risk / high-reward strategy involves investing in a single high-momentum fund that focuses on a specific sector like biotech.

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Fund Upgrading Core Strategy

Fund Upgrading is included in our Basic Membership. Become an SMI Member today to start taking advantage of this aggressive, market-beating strategy!

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The Power of Momentum

Our most popular core strategy, Fund Upgrading is a “momentum” strategy premised on the idea that recent past performance tends to persist. The strategy has you diversify your portfolio across five stock fund “risk categories” and up to four bond categories. You then buy the funds SMI objectively determines to have the highest momentum, occasionally replacing lagging funds with those showing stronger momentum. With just monthly maintenance, Fund Upgrading has generated considerably better returns than the overall market.

Growth of $10,000

Data current through 2000-2014

Strategy Average
12 Months
Best
12 Months
Worst
12 Months
Relative
Risk
Fund Upgrading 8.3% 62.3% -42.8% 1.08
Wilshire 5000 4.7% 55.6% -43.3% 1.00

Investors who want to maximize their potential to outperform the overall market.

Excellent long-term market beating track record.

Fairly high volatility. Usually will decline when the market declines, but typically not as much.

Just the Basics Core Strategy

Just-the-Basics is included in our Basic Membership. Become an SMI member today to start taking advantage of this simple, low-maintenance strategy!

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Simple Excellence

This is our simplest core strategy, with portfolio changes needed just once a year. Through the use of index funds, you own the entire stock market—domestic and foreign—and if your asset allocation calls for it, the entire bond market, too. But don’t be fooled by its name or simplicity. Just-the-Basics has built a track record of slightly outpacing the U.S. stock market. Because funds are not bought or sold throughout the year, Just-the-Basics is especially well suited for use in taxable accounts. 

Growth of $10,000

Data current through 2000-2014

Strategy Average
12 Months
Best
12 Months
Worst
12 Months
Relative
Risk
Just the Basics 5.0% 62.0% -45.4% 1.09
Wilshire 5000 4.7% 55.6% -43.3% 1.00

Investors who are content to earn the market’s overall return and prefer a largely hands-off strategy. 

The ultimate in simplicity.

Gives up the potential to outperform the market.

Dynamic Asset Allocation Core Strategy

Dynamic Asset Allocation is included in our Premium Membership. Become an SMI Premium Member today to start taking advantage of this low-volatility strategy!

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An Investing Strategy for the Risk-Averse

Our newest strategy, introduced in January 2013, DAA is a core portfolio strategy that’s designed to help you share in some of a bull market’s gains, while minimizing (or even preventing) losses during bear markets. The strategy involves using exchange-traded funds to rotate among six asset classes, holding three at any one time. DAA is a defensive, low-volatility strategy that nonetheless has generated impressive back-tested results, demonstrating the power of “winning by not losing.”

Growth of $10,000

Data current through 2000-2014

Actual Results

Backtested Data

Strategy Average
12 Months
Best
12 Months
Worst
12 Months
Relative
Risk
DAA 12.5% 32.1% -13.7% 0.60
Wilshire 5000 4.7% 55.6% -43.3% 1.00

Investors who want to share in market gains, although to a lesser degree than the overall market, while strongly protecting against loss in a downturn.

Excellent downside protection, reflected in very low relative-risk score and worst-case result. Great long-term track record.

Can lag the market in up years. May be emotionally challenging to concentrate entire portfolio in only three asset classes and make required trades promptly. 

Sector Rotation Add-on Strategy

Sector Rotation is included in our Premium Membership. Become an SMI Premium Member today to start taking advantage of this performance-boosting strategy!

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Give Your Portfolio a Boost

This optional add-on strategy invests in a single special-purpose stock fund that focuses on a specific sector like biotech or financial services, which SMI objectively determines to have especially high current momentum. It’s a high-risk/high volatility strategy. While its peaks and valleys have been higher and lower than all other SMI strategies, Sector Rotation has generated especially impressive long-term returns. The strategy is designed for use with no more than 20% of your stock allocation.

Growth of $10,000

Data current through 2000-2014

Actual Results

Backtested Data

Strategy Average
12 Months
Best
12 Months
Worst
12 Months
Relative
Risk
Sector Rotation 15.2% 84.3% -38.6% 1.85
Wilshire 5000 4.7% 55.6% -43.3% 1.00

Experienced investors willing to experience significant short-term volatility in pursuit of high long-term returns.

Very attractive long-term returns.

Much greater month-to-month volatility and relative risk with dramatic short-term loss potential.