Smart Ladybug Portfolio

Last updated December 29, 2023

Long-term investment strategy

Disclosure for educational purposes

On this page, we present a simple and effective investment strategy, based on an intuitive approach that embraces the different asset classes, overcoming the traditional asset allocation logic (40/60, balanced funds, life strategy, Golden Butterfly). In fact, in Economics and Finance, theoretical models as well as modern quantitative approaches are not able to fully grasp the dynamics of the markets and this explains why blind faith in theory or statistics can lead to disastrous practice.

Our approach to asset allocation takes the form of an investment strategy that favors simplicity over complexity, generating a model that produces better and more stable results by considering risk and value as primary evaluation factors and not just total performance.

For these reasons we decided to develop a unique strategy, called Smart Ladybug, a model that proves capable of returning reliable and consistent results even in difficult market conditions such as 2022.

This asset allocation model is based on the effective selection and rotation of 7 ETFs, expertly balanced with each other and chosen based on some particular characteristics that favor fundamental analysis, cash flow and value.

Here are some of the fundamental criteria that make this strategy stable and profitable:

• No exchange rate risk. All assets are denominated in Euros.

• No specific risk. All the selected ETFs include baskets of hundreds of diversified securities and assets.

• No leverage risk. The strategy does not include any financial leverage.

• Limited equity exposure. Exposure to stock markets is limited to 35% of the total.

• Solid investments. No investments in emerging, exotic markets or crypto assets.

ETFs have numerous advantages over traditional open-end funds or stock picking. The 3 most important benefits are liquidity, portfolio diversification and cost reduction.

Imagine you have invested €20,000 for 10 years in mutual funds. In the best case scenario you faced 1.65% annual management costs which correspond to approximately €3,300 in 10 years. It is clear that with the same performance, the mutual fund strategy is already a loser from the start. Let's also add other inefficiencies and related banking costs. To be clear, the annual expense ratio of our ETF strategy stands at 0.19%.

No consultancy costs, no fixed commissions!

It is statistically proven that active mutual funds are unable to obtain better performances than the reference benchmarks or passive ETFs, even in relatively short time horizons. In the long term, asset management in mutual funds does not bring any further benefit to the investor.

Strategy Trend from 2019

Passive version with 1 annual rebalancing. Start of survey January 2019.

Data updated as of December 29, 2023.

The composition of the reference benchmark provides for an equity exposure of no more than 35%, similar to a 40/60 (Stocks/Bonds) Portfolio management scheme.

Total performance Since 2019: +47%

Benchmark: +16%

2023: +10,74%

Benchmark: +9%

2022: +4,60%

Benchmark: -15,40%

2021: +15,36%

Benchmark: +6,57%

2020: +0,84%

Benchmark: +1,97%

2019: +14,3%

Benchmark: +13,36%

Build your Portfolio and stop delegating.

From 2019 to today (29 December 2023), this strategy has recorded an overall performance of 47% while the benchmark has stopped at 16%.

2023 has just ended with the achievement of all budgeted targets.

The total performance for the year 2023 was 10.74%.

In 2022, the Smart Ladybug model had achieved a positive performance, while the vast majority of balanced funds, 40/60 strategies, golden butterfly, achieved negative performances of around -15%, aggravated by management and consultancy fees which, on average they are around 2% on an annual basis.


The Smart Ladybug strategy requires very little maintenance.

Returns are obtained thanks to a maximum of 2 annual rebalancing and the reinvestment of dividends.

It is a passive investment strategy, for long-term investors, with time horizons exceeding 5 years.