Does Your Portfolio Need A Check-up?

Many people including myself have their investment accounts spread out among multiple financial institutions. That can make it very difficult to get a holistic view of an entire portfolio’s asset allocation. The problem with this is that an investor could unknowingly be taking on more risk than they are aware of and comfortable with or be positioned too conservatively given their risk tolerance, time horizon, and expected rate of return. Some financial institutions provide tools that allow you to analyze only the portion of your portfolio that you have housed at that particular institution, but I’ve found a great tool that allows you to analyze your entire portfolio for free.

About once a quarter I do check-up on my entire portfolio using the Morningstar Instant X-Ray tool (available for free through Ameritrade). The tool allows you to enter the ticker symbols of all your stocks, mutual funds, ETFs, etc. and the portfolio dollar value $ or percent value % of each holding (up to 50 holdings). It provides insight into a portfolio’s strengths and weaknesses and includes asset allocation and exposure to different investment styles, geographic regions, and sectors. It also provides information on fees & expenses and key valuation statistics.

Morningstar Instant X-Ray

It’s extremely important to know what you own. Does your portfolio need a check-up? If so, give your portfolio an X-Ray, its health may surprise you!


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