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Ever since we started Hush, one of the most common questions we’ve received is how our performance compares with the markets. But there are many different markets and many different benchmarks, each with different goals that serve different purposes. At Hush, when we look at benchmarks to see how our portfolios measure up, we are deliberate in choosing a benchmark that accurately reflects what we are trying to achieve.
In other words, we want to compare apples to apples, and oranges to oranges.
Here are two of the markets that anyone interested in Hush ought to know about, and why we have favored one over the other for our free app.
Most people know about the S&P 500, which is a stock market index that tracks the top 500 stocks on the US stock exchange. While you can’t buy the S&P 500 directly, as it is a theoretical rather than an investable index, you can buy ETFs that track the S&P 500, such as SPY or VOO. When most investment products or services discuss their returns, they are frequently comparing themselves to the S&P 500. The stocks included are exclusively based in the US market and tend to be concentrated in the technology sector. It also tracks exclusively stocks, without any bonds or alternatives, making it less diversified than a Hush portfolio.
For our Adventurer, Strategist, and Protector strategies, we don’t compare ourselves to the S&P 500. For one, our strategies are not limited to the US markets, but are diversified across dozens of geographic regions and industries around the world. For another, our portfolios are structured and designed to be less volatile than the S&P 500. We look for ETFs that don’t show wild ups and downs, but rather steady movement. To that end, we use the AOR ETF, the iShares Core 60/40 Balanced Allocation ETF, as our benchmark. Unlike the S&P 500, AOR is an investable ETF* that includes stocks, bonds, and alternatives, and assets from around the world. This makes it a closer model for comparison, in terms of diversification and risk alignment, and why we’ve chosen to use it as our benchmark.
When we choose to compare ourselves to AOR rather than the S&P 500, it’s because the ultimate composition and goals, as well as diversification and risk profile, are more aligned. When choosing an investment strategy, these are important factors to consider beyond the pure numbers.
*The AOR is an investable exchange-traded fund. Its performance includes the reinvestment of dividends and is net of its internal operating expenses. Unlike a theoretical index, the ETF incurs transaction costs and management fees.
Investing involves risk, including loss of principal. Please consider, among other important factors, your investment objectives, risk tolerance and Hush app pricing before investing. Investment advisory services offered by NINE30 Advisors LLC (NINE30), an SEC-registered investment advisor. Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.
No Guarantee of Wealth Accumulation: The tagline 'Get rich slow' is intended to describe a disciplined, long-term investment strategy and does not guarantee wealth accumulation. Investors should be aware that all investments carry risks, including the potential for loss of principal. Past performance is not indicative of future results. Risk Disclosures for Investment Strategy: Investing in any strategy involves inherent risks, including the risk of loss. The potential for gains or losses depends on market conditions and other factors beyond our control. Clients should carefully consider their financial situation, investment objectives, and risk tolerance before pursuing any investment strategy. Balanced Presentation of Performance: All strategies and past performance data presented in this material are based on historical analysis and are not predictive of future performance. Investments may not perform as expected, and actual outcomes may vary. We do not guarantee future results, and clients should fully understand the risks involved.
A properly suggested portfolio recommendation is dependent upon current and accurate financial and risk profiles. Clients who have experienced changes to their goals, financial circumstances, or investment objectives, or who wish to modify their portfolio recommendation, should promptly update their information in the Hush app. All percentage return numbers or other performance related numbers shown are hypothetical.
Past performance, whether simulated or actual, is not a reliable indicator of future outcomes. Investors should not assume that similar returns will be achieved. All investments carry the risk of loss, and investors may lose some or all their principal. Please review the advisory contract and Form ADV Part 2A Narrative for further details regarding fees, risks, and other important information.
Subscription Fees depend on the end of month value of your portfolio with us and range from free to $5 per month. NINE30 does not charge transactional fees, commissions or fees based on assets for accounts under $1 million. NINE30 does not receive compensation for referring clients or marketing third party services, and thereby avoids such potential conflicts of interest.
The ETFs comprising the portfolios charge fees and expenses that will reduce a client’s return. Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. Investment policies, management fees and other information can be found in the individual ETF’s prospectus. Please read each prospectus carefully before investing.
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