We’ve recently rolled out a new Investment Checkup feature available to all Personal Capital users. The new feature does the following three things to help you make better investment decisions based on your personal risk tolerance:
1) Analyzes stock concentration: See what your largest holdings are and if you have too much of any one equity position.
2) Analyzes domestic equity sector exposure: Identify if you are overweight or underweight in any one sector and see how well you are diversified. You can compare your portfolio to the S&P 500 as well as our Tactical Weighting recommendation, which is based off equal weightings across sectors instead of market cap weightings.
3) Analyzes US equity style: See how your portfolio stacks up among large, mid and small cap stocks vs our Tactical Weighting recommendation and the S&P 500. Many people do not have much small cap exposure and might be too overweight in large cap stocks or vice versa.
Below is a screen shot of what you should see when you log on to your Dashboard. Simply click “Investing” in the top right and then click “Investment Checkup” to get started.
The following screen shots are examples of what the new Investment Checkup features can do for you.
1) Stock Concentration: A snapshot of your individual holdings and feedback on the diversification of your portfolio based on stocks, sector, and style.
2) Domestic Equity Exposure: A snapshot showing your portfolio is very overweight in technology based on our Tactical Weighting suggestions. You can also click on the S&P 500 button to see how your portfolio stacks up to the S&P 500 market cap weighting.
3) US Equity Style: A snapshot of your portfolio’s composition based on style vs. our Tactical Weighting recommendations and the S&P 500 composition. In this example, your portfolio is underweight Mid Cap Core and Small Cap Core.
To access the new Investment Checkup feature please:
1) Log on to your Personal Capital dashboard.
2) Click the Investing Tab on the top of your dashboard
3) Click Investment Checkup from the drop down men
4) Click STOCKS to get an assessment of all your investment accounts.
5)) Click the down arrow in ALL ACCOUNTS to toggle between investment accounts for more specificity.
Hopefully this simple, yet powerful new Investment Checkup feature will give Personal Capital investors an easy tool to measure their portfolio composition over time. We recommend you run the new feature before having a conversation with your financial advisor in order to have the most effective conversation possible.