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Based on the current portfolio and benchmark you have indicated, you may want to consider the following ways to align your portfolio.

Fund-to-Fund Correlation

Your portfolio contains positions that have a high degree of positive correlation to each other.

This means that some holdings in your portfolio have similar movement in monthly returns, and you may not get much benefit from diversification as intended. Additional Correlation Details

Number of Fund Families

Diversify manager selection: Your portfolio includes investment products from one fund family.

Consider diversifying your manager selection.

Sharpe Ratio

Your portfolio has a lower Sharpe Ratio than your selected benchmark.

You may want to discuss with your investment professional to consider ways to generate similar returns for a lower risk level.

Higher Expense Ratio than Benchmark

Your portfolio has a higher expense ratio than the benchmark.

The average net expense ratio of your Portfolio is 0.66%, and the Benchmark 0.25%.

Underweight in equities

Compared to your selected benchmark, you are underweight in equities. To better match the selected benchmark, consider whether rebalancing is appropriate.

Your portfolio is 7.88% underweight in equities as compared to the benchmark.

Overweight in fixed income

Compared to your selected benchmark, you are overweight in fixed income. To better match the selected benchmark, consider whether rebalancing is appropriate.

Your portfolio is 5.69% overweight in fixed income as compared to the benchmark.

Significant high yield exposure in fixed income

Your fixed income portfolio is 52.35% exposed to high yield, which may behave similarly to equities. The greater exposure to high yield may be reducing or skewing the diversification benefits of fixed income holdings in your portfolio.

To learn more about historical performance of high-yield instruments in various market cycles, click here.