Current Allocation

Scottrade Portfolio Review Tool displays the current allocation of your account in terms of your exposure to seven different areas of the market called market segments. The Current Allocation section offers you a visual breakdown of the assets in your account by market segment and displays the percentage of your portfolio made up by each segment to help you determine whether the asset balance of your portfolio matches your investment strategy.

Because each market segment has unique risk and return characteristics, it's important to allocate your investments in a way that can help you meet your investment goals. For example, if your investment strategy targets aggressive portfolio growth, your portfolio may be more heavily weighted in equities. On the other hand, a conservative investment strategy might rely on holding a large percentage of fixed income products in the portfolio.

There are three components of the Current Allocation section of your page: a pie chart, the market segment column and the portfolio percentage column.

Current Allocation Pie Chart

The pie chart displays the current allocation of your portfolio in a visual representation of how your account is allocated by market segment. The color of each pie slice corresponds to the market segments shown on the page. For example, the image below shows a portfolio that's heaviest allocation, the dark blue slice of the pie, is in the U.S. Large Cap Equity segment.

You can use the pie chart to assess how each of your holdings fit into the overall balance of your portfolio and determine whether that balance is working toward your investment strategy. To learn more about the risk and return expectations for each market segment, take a look at the second page of this Target Model Comparison PDF.

Note: The Current Allocation pie chart only reflects the long positions you hold in your Scottrade account. Short positions are not shown in your current allocation.

Market Segment Column

The Market Segment column displays seven areas of the market called market segments. Market segments are sub-categories of asset classes that help you balance your portfolio on a deeper level. The segments shown in Scottrade Review Tool are:

  • U.S. Large Cap Equity
  • U.S. Mid Cap Equity
  • U.S. Small Cap Equity
  • Non U.S. Equity
  • Fixed Income
  • Cash
  • Other

Beside each segment is a color code that corresponds to the pie chart located to the left of the Market Segment column. For example, the image below shows that the cash portion of your account is represented by the green slice of pie.

Portfolio Percentage

In the Portfolio Percentage (%) column, you can see the exact percentage of your portfolio allocated to each market segment. The percentage breakdown can help you identify market segments in which your current portfolio is under or overexposed based on your investment strategy.

How to Use This Information

If you decide that the current allocation of your assets doesn't align with your investment strategy or you want to compare your allocation to a pre-defined investment strategy, you can choose a new asset allocation strategy from one of the target models offered. Each target model offers a pre-defined asset allocation according to a different investment strategy, and the strategies range from conservative to aggressive. When you select a target model, you can use that model as a framework for implementing your investment strategy.

If you don't want to select a predefined strategy or model, you can develop your own allocation strategy and use our analysis tools to evaluate how your strategy diversifies your investments based on your goals.

Next Step: Select a Target Model

Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market.

The analytical tools described in this article are for information purposes only and their use does not guarantee a profit. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision.