Model Portfolios

SmartSkor ranks stocks from 1 to 10 based on expected performance — giving investors a systematic roadmap to which stocks are expected to outperform the market in the coming period. Experienced investors can combine these scores with their own portfolio logic. However, for most investors the real challenge lies elsewhere: deciding which stocks to hold and in what weights.

Model Portfolios fill exactly this gap. Each month, we select the highest-SmartSkor stocks from BIST's official indices, convert them into an equal-weighted portfolio, and present them to the investor. On the first trading day of each month the portfolio is reconstituted — stocks that drop out of the ranking are removed, and newly strengthened ones are added. The only thing the investor needs to do is choose a portfolio that aligns with their investment preference and review the contents at the start of each month.

Thirteen model portfolios are currently active. They can be thought of in five groups:

Broad-Based

• SmartSkor Top 10 - All BIST: The 10 highest-SmartSkor stocks from the full BIST universe
• SmartSkor Top 20 - All BIST: The 20 highest-SmartSkor stocks from the full BIST universe

Index-Based

• SmartSkor BIST 30 Top Picks: Top 10 from the BIST 30 universe
• SmartSkor BIST 100 Top Picks: Top 10 from the BIST 100 universe
• SmartSkor Non-BIST 100 Top Picks: Top 10 from stocks outside BIST 100

Sector-Based

• SmartSkor Top 10 - Financials Index: Top 10 from the BIST Financial Index (banks, insurance, leasing, factoring)
• SmartSkor Top 10 - Manufacturing Index: Top 10 from the BIST Industrial Index
• SmartSkor Top 10 - Services Index: Top 10 from the BIST Services Index

Theme-Based

• SmartSkor Top 10 - Sustainability Index: Top 10 from the BIST Sustainability Index
• SmartSkor Top 10 - Dividend Index: Top 10 from the BIST Dividend Index
• SmartSkor Top 10 - Participation Index: Top 10 from the BIST Participation All Index

Geography-Based

• SmartSkor Top 10 - Istanbul Index: Top 10 from the BIST Istanbul Index (XSIST)
• SmartSkor Top 10 - Outside Istanbul: Top 10 from companies headquartered outside Istanbul (since BIST does not publish a corresponding index for this universe, the universe is defined by TuneUp)

Each portfolio holds the highest-SmartSkor stocks within its universe. 12 portfolios are based directly on BIST's official indices; only the SmartSkor Top 10 - Outside Istanbul portfolio uses a TuneUp-defined filter ("companies headquartered outside Istanbul") because BIST does not publish a single corresponding index. Investors targeting a sector or theme gain direct access to the strongest stocks in that universe; those preferring broad-based exposure can access the highest-scoring stocks across the entire BIST.

The same four-step rule sits behind every model portfolio. None of these rules require judgment, intuition, or opinion from the investor; the entire process is algorithmic and repeatable.

1. Universe Definition

Each portfolio has a selection universe — the full BIST, a specific BIST index (BIST 30, BIST 100, BIST Financial, etc.), or a specially defined filter (outside BIST 100, headquartered outside Istanbul). Index membership data is sourced monthly from KAP (the Public Disclosure Platform) announcements; sector and city index member lists are updated as of month-end.

2. Ranking

All stocks within the universe are ranked from highest to lowest based on their SmartSkor values for that month. For the details of the SmartSkor methodology, see the relevant page (in brief: hundreds of characteristics are organized under six categories, individually normalized, and combined with equal weight to produce a composite score between 1 and 10).

3. Selection

For each portfolio, the top 10 stocks in the SmartSkor ranking from the relevant universe are selected (top 20 for the SmartSkor Top 20 - All BIST portfolio). When tied scores require a decision, the ranking falls back on the underlying composite value.

4. Weighting

All portfolios are equal-weighted. In a 10-stock portfolio, each stock carries 10%; in a 20-stock portfolio, each carries 5%. Equal weighting makes the methodology both simpler to implement and free from the risk of overfit weighting schemes calibrated on historical data.

Monthly Reconstitution

The most critical feature of these portfolios is that they are not static. A new SmartSkor ranking is produced each month, so the top stocks of one month may not be the top stocks of the next. Portfolios are reconstituted on the first trading day of each month; stocks that drop out of the ranking are removed, and newly included ones are added. No trades are made in stocks that remain in the ranking. This cycle ensures the portfolio leans on the market's most current signals every month.

Comparison Benchmarks

Each portfolio's performance is shown alongside the most appropriate reference index for its universe. The logic: whatever universe the portfolio draws from, the BIST index representing that universe serves as the benchmark. This gives an honest answer to the question: "Did the best-of-universe selection actually beat the universe as a whole?"

* For SmartSkor Top 10 - Outside Istanbul, since BIST does not publish a single Anatolia index, XU100 is used as the reference. The SmartSkor Top 10 - All BIST/20 portfolios select from the entire BIST universe but are compared against XU100 because it is the most widely recognized reference.

Choosing the Right Portfolio

The choice of model portfolio depends on the investor's investment goal. Those seeking broad diversification may prefer SmartSkor Top 20 - All BIST; those wanting a more concentrated portfolio can lean toward SmartSkor Top 10 - All BIST. Investors targeting a specific sector can choose one of the Financials, Industrials, or Services portfolios; those with a thematic preference can choose Sustainability, Dividends, or Participation. Those with a geographic preference can choose Istanbul or Anatolia.

Monthly Rhythm

On the first trading day of each month the portfolio is reconstituted; the interface clearly shows which stocks left and which were added. The investor needs to do three things:

• Sell stocks that are no longer in the portfolio
• Buy newly added stocks at equal weight
• Make no changes to stocks that remained in the ranking

What to Do During the Month

Nothing. SmartSkor values update daily, but the model portfolio is designed for monthly reconstitution. Trading on intra-month SmartSkor movements does not improve returns; on the contrary, it generates transaction costs and timing errors. Sustainable returns require disciplined month-end review.

Reading the Benchmark Comparison

Each portfolio's performance is displayed side by side with its comparison benchmark. The investor can ask: "Did this portfolio beat the index that represents its own universe?" If yes, SmartSkor's ability to add value within that universe shows up as a concrete result. Some portfolios may underperform their benchmark in the short term; performance should be assessed over the medium-to-long term.

Combining Multiple Portfolios

An investor can combine multiple model portfolios. For instance, 50% SmartSkor Top 10 - All BIST + 50% SmartSkor Top 10 - Dividend Index produces a two-legged approach focused on both growth and dividends. Overlap between portfolios is possible; the same stock can appear in two portfolios. In that case, the stock's effective weight equals the sum of weights in the portfolios where it appears.

The construction of model portfolios is a direct extension of the SmartSkor methodology. All portfolios are based on SmartSkor rankings that have been tested on 20 years of historical Borsa Istanbul data and validated out-of-sample. For the details of the SmartSkor methodology, performance test results, and the academic literature behind it, see the relevant methodology page.

Equal Weighting

Stock-level equal weighting is the chosen approach. No optimization or data-derived weight inference is performed. This choice is right for two reasons: (1) simplicity provides comprehensibility for the user, and (2) weighting schemes that overfit to historical data tend to fail in the real world.

Limitations

Model portfolios are not an investment guarantee. The SmartSkor methodology is designed to deliver performance on average and over the long term; any individual portfolio may underperform its benchmark in the short term. The investor's investment horizon, risk tolerance, and existing portfolio structure should always be taken into account.

Comparison Benchmark Updates (May 2026)

SmartSkor Top 10 - Istanbul Index — From XU100 to XSIST

Since the portfolio selects from Istanbul-headquartered companies, the correct benchmark is the BIST Istanbul Index (XSIST). Comparing against XU100 means ignoring the portfolio's actual universe; XSIST represents the entirety of the same universe.

SmartSkor Non-BIST 100 Top Picks — From XU100 to XUTUM

Since the portfolio selects from companies outside BIST 100, XU100 itself cannot serve as a benchmark — comparing against an excluded universe is methodologically incorrect. BIST All Shares (XUTUM) covers the entire market and is therefore a more inclusive and fair reference.

Other Portfolios

The comparison benchmarks for the other 11 portfolios remain unchanged. For SmartSkor Top 10 - Outside Istanbul, since BIST does not publish a single corresponding index, the existing XU100 reference is maintained.