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
Sign up for our strategies today!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.
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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.
Learn MoreJust 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.
Learn MoreDynamic 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.
Learn MoreSector 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.
Learn MoreI'm ready to get my finances in order and start investing!
Sign Up Today!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!
Sign Up Today!The Power of Momentum
Our most aggressive core strategy, Fund Upgrading is a "momentum" strategy premised on the observable phenomenon that recent past performance tends to persist. The strategy has you diversify your portfolio across five stock-fund "risk categories" (and, if your asset allocation calls for it, three bond-fund categories). You then buy the funds SMI objectively determines to be demonstrating the strongest current momentum, occasionally replacing lagging funds with those showing greater momentum. Fund Upgrading requires only monthly maintenance and has generated better long-term returns than the overall market.
Growth of $10,000
Data current through 2002-2021
| Strategy | Average 12 Months |
Best 12 Months |
Worst 12 Months |
Relative Risk |
|---|---|---|---|---|
| Fund Upgrading | 9.8% | 62.3% | -42.8% | 1.04 |
| Wilshire 5000 | 9.9% | 62.2% | -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!
Sign Up Today!Simple Excellence
This is our simplest core strategy, with portfolio changes needed just once a year. Through the use of index funds, you spread your dollars across the entire stock market (domestic and foreign) — and, if your asset allocation calls for it, across the bond market too. But don't be fooled by its name or simplicity. Just-the-Basics has 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 well-suited for use in taxable accounts.
Growth of $10,000
Data current through 2002-2021
| Strategy | Average 12 Months |
Best 12 Months |
Worst 12 Months |
Relative Risk |
|---|---|---|---|---|
| Just the Basics | 9.5% | 71.5% | -45.4% | 1.07 |
| Wilshire 5000 | 9.9% | 62.2% | -43.3% | 1.00 |
Investors who are content to match the market's overall return and prefer a largely hands-off strategy.
The ultimate in simplicity.
Gives up the potential to strongly 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!
Sign Up Today!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 2002-2021
Actual Results
Backtested Data
| Strategy | Average 12 Months |
Best 12 Months |
Worst 12 Months |
Relative Risk |
|---|---|---|---|---|
| DAA | 11.1% | 32.1% | -13.7% | 0.64 |
| Wilshire 5000 | 9.9% | 62.2% | -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 a 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 one's 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!
Sign Up Today!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 2002-2021
Actual Results
Backtested Data
| Strategy | Average 12 Months |
Best 12 Months |
Worst 12 Months |
Relative Risk |
|---|---|---|---|---|
| Sector Rotation | 13.3% | 89.6% | -38.6% | 1.78 |
| Wilshire 5000 | 9.9% | 62.2% | -43.3% | 1.00 |