Performance Review Chart

The Performance Review chart offers you a way to review different investment combinations and asset allocations to see how they may have performed in the past. It's important to realize that this chart displays hypothetical historical growth for both your current portfolio and Action Plan Model (if you created one) – the past performance displayed doesn't reflect any changes that were made in your account or any corporate actions in your holdings.

The chart assumes the asset allocations you chose under the Summary tab remained the same throughout the period represented on your chart. Using the information displayed, you can compare the hypothetical past performance of your current portfolio and Action Plan Model to analyze the benefits and risks of each.

The ability to review different Action Plan Models allows you to evaluate how successful different strategies and investment combinations would have been in the past. If you're unsatisfied with the past performance of an Action Plan Model, you can go back to the Summary tab and create a new one.

When you're analyzing the Performance Review chart, you can customize the period and the values used in your chart to get an idea of how different initial investments would have performed during different time horizons.

How to Customize Your Chart

Using the information displayed, you can compare the performance of your current portfolio to the strategy you created and saved as your action plan model. When you're using the Performance Review chart to review your strategy, you can:

  • Expand or narrow the time frame to see how your strategy would have performed over different periods by dragging the time bar below the chart
  • Enter different initial investment values in the “Common Value” field to see how starting with more or less capital would have impacted the returns of your strategy
  • Hover your mouse over a specific point on the chart to see what the market performance of your hypothetical portfolio would have been at that point in time

While you're using these techniques, you may want to evaluate:

  • Volatility in different time frames - The amount of volatility you're prepared to accept in your portfolio depends on your risk tolerance and the time horizon associated with your goal. If the strategy you created in your action plan model shows more volatility than you're comfortable with, you may want to try a different strategy.
  • Hypothetical historical returns - If you can see from the Performance Review chart that your action plan model wouldn't have generated the returns you expected in past market conditions, you may want to consider different investment combinations or a different strategy.

Charted Period

Choose to see performance for one month, three months, six months, one year or the maximum time available. The maximum time period that can be displayed on your chart depends on the length of time you've owned your investments. For example, if your portfolio includes one investment that was purchased two years ago and 10 investments that were purchased five years ago, your chart will only be able to display historical data for the last two years.

Click any of the times listed in the top left corner of your chart to see that period displayed on your chart.

Limitations of the Performance Review Charts

It's important to remember that past performance does not guarantee future results, and this tool doesn't reflect taxes, commission charges or inflation. Additionally, the tool assumes that set asset allocations were maintained throughout the time period displayed on the chart and therefore does not account for any corporate actions or allocation changes that may have occurred as a result of the market.

Next Step: Expose overlapping investments with our Portfolio Concentration table.

Alternate Next Steps: After taking a close look at how the allocations of your current portfolio and the Action Plan Model would have performed in the past, you may decide to make updates to your proposed allocation. If that happens, you can go back to the Allocation Tool under the Summary tab to make your changes.

If you're satisfied with the allocation shown in the Performance Review chart, you can continue evaluating your current portfolio and the Action Plan Model in the X-ray or Portfolio Concentration sections of the Analysis tab. Once you're comfortable with any changes you suggested through the Action Plan Model, your trades can be executed easily from the Action tab.

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.