BX Newsletter – May

May 31st, 2025

Advisors' Edge: May Updates from BX

BX is pleased to welcome new managers and strategies to our platform:

MerQube – AI Core Index
MerQube – Loomis Private Equity Index
Boosted.ai – US Equity Index
Boosted.ai – S&P 500 Tactical Index
Hillman Capital – Focused 30 Strategy
Dynalogic – Sector Rotation Growth & Income Strategy

Featured Strategy: 10/10/10 BX Model

This is one of our favorite models that we have built for financial advisors. It is an example of how we stay invested, but let the portfolio evolve as the market conditions change. We call it the BX 10/10/10.

It blends three sleeves of US Growth, US Value, and International Growth. While all three may not be going up at the same rate, they complement each other very well. This global model that contains only 30 stocks - Ten each of a US Large Cap High Dividend Strategy, a US Large Cap Growth/Momentum Strategy, and a Large Cap ADR strategy. It has outperformed the ACWI YTD, 1Y, 3Y, and longer. The correlations of the component strategies have been 0.62, 0.56, and 0.73 - remarkably low for an all-equity portfolio and dramatically lower than individual capitalization-weighted sleeves. This helped keep the three-year maximum drawdown to 17% while still delivering strong outperformance.

Whether we compare to the ACWI, SP500, MTUM, NOBL the 10/10/10 has solid performance, participating on the upside, and protecting on the downside.

Most investors probably had similar results to the ACWI index. If that's the case, that might not be good enough. A 6.5% return over 3 years and a 7.5% return over the last year(through 3/31) might not get your clients to their goals. This paltry return also came with a 23% maximum drawdown - over 3X the annual return.

This is a great time to add new performance to your client portfolios... If you would like to get more information on the strategy, simply fill out the form below

10/10/10 returns FY 2024 and YTD:

BX & Manager Thought Leadership

Why Traditional Diversification is Holding Your Client’s Portfolios Back by BX FolioBeyond Monthly Commentary Risk Management for Volatile Markets by BX

Top Performing Managers: Year to Date (5/31/25)

Category

Index / Benchmark

YTD Return*

BX Sector Rotation Growth & Income Model

SPDR S&P 500 ETF Trust

1.23%

0.87%

Download Factsheet

BX/Thor Diversified Bond Index

iShares Core U.S. Aggregate

1.73%

2.22%

Download Factsheet

Inside the Index

BX/FolioBeyond Dynamic Volatility Fixed Income Index

Benchmark: iShares Core U.S. Aggregate

0.14%

2.22%

Download Factsheet

Inside the Index

BX EU Large Cap Momentum 20

Benchmark: iShares MSCI EAFE Min Vol

25.19%

19.42%

Download Factsheet

BX/Thor International Equity Index

Benchmark: iShares MSCI EAFE Min Vol

12.55%

19.42%

Download Factsheet

Inside the Index

BX/FT American Disciplined Mid Cap Index

Benchmark: iShares Core S&P Midcap ETF

1.65%

-3.38%

Download Factsheet

Inside the Index

BX SMID Core Equity Index

Benchmark: iShares Core S&P Midcap ETF

-4.15%

-3.38%

Download Factsheet

BX/Thor Sector 100 Index

Invesco S&P 500 Low Volatility

9.45%

5.26%

Download Factsheet

Inside the Index

BX US Low Volatility Equity Index

Invesco S&P 500 Low Volatility

9.07%

5.26%

Download Factsheet

BX Smart Alpha US Tech & Innovation Strategy

iShares US Technology ETF

0.81%

-0.75%

Download Factsheet

Inside the Index

BX/Thor Next Gen Stock Index

iShares US Technology ETF

-0.71%

-0.75%

Download Factsheet

Inside the Index

BX US Large Cap Trend Capture

SPDR S&P 500 ETF Trust

16.51%

-0.87%

Download Factsheet

BX Smart Alpha US LargeCap Multi-Factor Strategy

SPDR S&P 500 ETF Trust

15.83%

-0.87%

Download Factsheet

Inside the Index

BX/Syntax Defensive Index

iShares Russell 1000 Value ETF

14.79%

2.32%

Download Factsheet

BX Smart Alpha US LargeCap Value Strategy

iShares Russell 1000 Value ETF

9.02%

2.32%

Download Factsheet

Inside the Index

*As of May 31, 2025

We Partner with StratiFi

Use StratiFi to gather information about a client's investment goals, time horizon, etc... Compare the risk, return, fees, expense and performance of each investment and make informed recommendations to help clients align their investments with their overall financial plan. Finally, generate a StratiFi proposal which you can use in your next prospect meeting. For a free trial of Stratifi, e-mail [email protected] or fill out the form below.

Intelligent Designs. Powerful Results

BX puts the power back in the advisor’s hands. For too long, the investment industry has flooded the market with redundant, mediocre solutions distracting from what truly matters, client outcomes. BX closes this gap by partnering with advisors to design smarter, streamlined portfolios that adapt to today’s dynamic markets and tomorrow’s opportunities. We are soon launching our investment proposal tool. To gain access to BX's portal, please e-mail [email protected] or fill out the form below.

Upcoming Webinars

Using BX Core to Create Effective Models & Proposals, July 10th, 1pm BX
Conservative vs Moderate vs Growth Blends, July 24th, 11am, IndexOne

Recordings and Resources

BX Optimizing Investment Alpha and Tax Alpha in a Global Equity Portfolio (May 15) Simplify Portfolio Management: Save Time, Reduce Risk, and Customize with Confidence | Stratifi (April 29)

About BX

BX is an open architecture investment platform dedicated to finding the best money managers in the world. We currently work with 20 who have a combined 60 strategies on BX. Working with financial advisors, we create high performing models, that are designed to improve risk adjusted performance. Some of these include: 60/40, fixed income, all equity, and tactical and are all built so you can deliver better performance for your clients financial plans. To explore our website and get more information on our most popular models, click the button below. Like other advisors, we think you’ll like the BX approach.

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DISCLAIMER

Performance Disclosure

All indexes, models, and research provided are strictly for financial professional use only and not to be shared with the public. Indexes and models are licensable through BX Index by financial professionals.

Please see the model and index fact sheets for more information about any specific index, including launch date. Some of these indices contain data that reflect “hypothetical” or “back-tested” returns. All information prior to an index’s launch date is hypothetical (back-tested), not actual performance, and is based on the index methodology in effect on the index launch date applied to the universe at the time. Complete index methodology is available upon request. Back-tested performance reflects application of an index methodology and selection of index constituents with the benefit of hindsight and knowledge of factors that may have positively affected its performance and may be considered to reflect survivor bias. Actual returns may differ significantly from, and be lower than, back-tested returns. Past performance is not an indication of future results. Back-tested performance is for use with institutions/financial professionals only and is not for use with retail investors.

Index and model returns do not represent the actual trading of investable assets/securities. Index One maintains the index and calculates index levels and performance shown but does not manage actual assets. Returns shown do not reflect any sales charge or investment management fees that may have been paid.

General Disclaimer

BX Index and its third-party index providers do not provide investment or tax advice. BX Index and its third-party index providers make no representation or warranty, express or implied, as to the ability of any index to accurately represent its objective and they shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is no guarantee of future results. All information provided is general in nature and not tailored to the needs of any person(s) or entities. BX Partners and its third-party index providers are not an investment nor tax advisor and make no representation regarding the advisability of investing in any specific index model for any client.