New Investment Checkup Feature On Personal Capital

in Personal Capital News by

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.

investment-checkup-0.jpg

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.

Investment-Checkup-1

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.

Personal Capital Investment Checkup

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.

Investment Checkup Personal Capital

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.

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Jim Del Favero
Head of product for Personal Capital. I spent 17 years at Intuit working on Quicken, Quicken.com, Quicken Online and other direct to consumer financial offerings.

8 comments

  1. Lord Fish

    Thanks for the great updates. I had missed the old golden cube showing the large, mid and small-cap weighting.

    Reply
    • Jim

      The cubes were not loved by many people and the response to the new bar graph visual for equity style seems to be going over well. Also we added the ability to switch between tactical weighting and S&P view for comparison.

      Reply
  2. Financial Samurai

    Good stuff Jim. How long did it take for your team to implement all the new features?

    Also, what are your thoughts about Smart Indexing vs. the S&P 500’s market cap weighted approach? Having an equal balance across sectors sounds fine, but surely some sectors are growing faster than others and one might like to overweight them. This is something one can easily have their financial advisor at PC do yeah?

    Reply
    • Jim

      Sam, Craig a member of our investment committee and one of our CFP’s helps by doing a lot of the number crunching so the coding and design work comes out of that. Like much of what we do, the design work takes the longest so that we deliver something that’s visually appealing, clear, and simple.

      Reply
  3. Barbara Friedberg

    Barbara Friedberg

    Jim,
    This is such an important addition. So many investors lack important understanding and depth in the composition of their portfolio holdings. I can’t wait to check it out.

    Reply
    • Jim

      Thanks Barbara please let me know if have any suggestions for improving on it. We are constantly updating our tools and adding features and I rely on user feedback to help provide direction on where to focus.

      Reply
  4. Barry Zimmerman

    Great new additions that leverage the consolidated view of all assets that Personal Capital provides!

    With so many of us retiring soon, would it be possible to provide a consolidated view of estimated INCOME? (e.g. estimated Dividends for each security, Fund or Partnership shares)
    Most brokerage houses only show estimated annual income on a monthly statement in PDF or Paper format, which is very labor intensive to consolidate by hand into a single view of estimated income for one’s entire portfolio of holdings.

    Reply
    • Dave S

      Barry
      Its not really necessary to focus on dividends for each holding. For a 30 year retirement inflation and portfolio growth are more important factors. Certainly a portion should be income producing, but so long as a portfolio is growing, you draw out your dividend as a conservative share of the total portfolio.

      Reply

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