Portfolio Exposures

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The Exposure exhibit is present across Model Portfolios, Client Portfolios, and My Portfolio. This documentation focusses on the exposure exhibits found within Client and My Portfolios.

Exposure allows you to identify the distribution of your investments across various asset classes, regions, sectors, etc. The exhibits can also be configured so that they are compared to a benchmark of the user's choosing. This insight allows you to effectively manage risks and diversification. Monitoring your portfolio's exposure to a benchmark helps ensure deviations are strategic. Additionally, our Holdings Contribution table allows you to view which holdings make up your portfolio's exposure.

Client Portfolios functionality is available in the Advisor Pro plan, while the benchmarked exposures are available in My Portfolio in the Plus plan.

Exhibits

Navigate to the 'Exposure' tab to view your Portfolio broken out by Security, Instrument Type, Asset Allocation, Sector, Industry, Region, Country, Bond Credit Quality, or Bond Maturity.

  • Use the toggle to switch between presenting the Portfolio Exposure (pie chart) or Vs. Benchmark (bar chart).
  • The dropdown in the Holdings Table will enable you to filter the table results by segments of the exhibit (such as individual sectors or credit ratings) or view the results as an aggregate.
  • For all exhibits, excluding Security and Instrument Type, the exposures adopt "Look Through" logic when US Funds are present in the portfolio. This means that the exposures of the underlying constituents of the fund are represented in the exhibits. For example, if the portfolio was 50% / 50% allocated to SPDR's S&P 500 ETF (SPY) and Vanguard's Total Bond Market ETF (BND), the exposure exhibits would represent the underlying sectors, industries, credit quality, maturities, and country exposures from the equities and bonds in those funds. This is true only for US funds.

Security

Security exposure breaks down the high-level exposure of the portfolio to individual securities.

Instrument Type

Instrument type shows the aggregate exposure to instrument types such as Equity (common stocks), ETFs, Mutual Funds, Crypto, and so on.

Asset Allocation

Asset allocation shows the mix of asset classes (such as equity and fixed income) within your portfolio.

Geographic Breakdowns

Regional breakdowns provide insights into your portfolio's exposure to different regions and countries. We separate regional breakdowns into Equity, Fixed Income, and All. Cash is not reflected.

Sector/Industry Breakdowns

Sector and industry breakdowns offer a closer look at your portfolio's distribution across various segments of the economy, such as technology, healthcare, or financials.

For portfolios with fixed income exposure, the Fixed Income Sectors will break down the High Level (government, municipal, corporate, etc) exposures while the Detailed exposures will go deeper still.  

Bond Credit Quality and Maturity

For portfolios containing US funds with fixed income exposure, the Credit Quality and Maturity exhibits will provide context on these variables. Two critical factors to consider are credit quality and maturity. Higher-rated bonds (e.g., AAA) are considered safer, while lower-rated bonds (e.g., B) can offer higher yields but come with greater risk.

Bond maturity relates to the length of time until the bond's principal is repaid. Longer maturities usually offer higher yields but are more sensitive to interest rate changes.

Portfolio Contribution

Portfolio Contribution allows you to drill down into specific exposures. For example: the Equity Sectors Holding Contribution allows you to see which holdings contribute to portfolio Technology or Healthcare exposure. See the below table listing each holding within a chosen category. For each holding, we have its:

  • Portfolio Weight: Weight in the portfolio
  • Portfolio Value: Notional value in the portfolio
  • Exposure: Percentage exposure to the selected sector, region, etc.
  • Portfolio Contribution: Multiplies the portfolio weight by the exposure to show the contribution to the portfolio's level exposure.

In the below example, we can see that SPY holds a 7.6% weight in the portfolio, valued at $1.15k. The fund is 5.7% exposed to the Consumer Staples sector at the fund level, and contributes 0.4% to the portfolio's Consumer Staples exposure. The other holdings in the table are direct holdings in Consumer Staples stocks. Their exposure to the sector, is therefore 100% and the portfolio weight equals the portfoli contribution.  

This granularity allows you to view outsized or underrepresented exposures, dive into the root cause, and modify your target weights accordingly to improve your model portfolio.

Custom Sorting

You can sort the Vs. Benchmark Holdings chart by:

Portfolio Exposure: Order from largest to smallest to identify your top exposures by sector or region.

Over/Under Weight: Highlight sectors or regions with the most significant deviation from the benchmark.

Name (Alphabetical): Alphabetize country and industry names for easier location of specific exposures.

Coverage

Portfolio holdings are analyzed when they consist of global stocks, or ETFs, and Mutual Funds located in the U.S. or Canada. However, ETFs domiciled outside the U.S. and Canada are not included in the exposure exhibits.

Exposure exhibits will add to 100%. Breakdowns like Equity Sectors and Fixed Income Credit Quality will show the percentage of exposure within portfolio positions that have Equity or Fixed Income holdings. For example, in a 60% SPY (equity) and 40% TLT (bond) portfolio, the equity sector analysis will only reflect SPY.

Summary

Portfolio exposures help investors manage risks and diversify by understanding investment distributions across asset classes, regions, sectors, and more. Portfolio Contribution table provides detailed insights into the specific contributions of individual holdings to portfolio exposure.

Use this tool to adjust your portfolio's weights with this tool to fine-tune exposure levels effectively. Explore today and unlock the potential for smarter, more effective portfolios!