Consider reviewing your benchmark

One or more asset classification categories in your portfolio exceeds a 10% threshold difference from your selected benchmark.

Consider reviewing your benchmark to a benchmark that is more closely aligned to your portfolio and determine if another benchmark is more appropriate.

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.

Higher Expense Ratio than Benchmark

Your portfolio has a higher expense ratio than the benchmark.

The average net expense ratio of your Portfolio is 0.97%, and the Benchmark 0.4%.

Hypothetical performance in historical scenarios

In 2008 Global Financial Crisis (June-2007 - Feb-2009), a portfolio with your current asset allocation would have underperformed the benchmark by 12.73%.

Higher downside volatility than benchmark

Over the past 3 years, your portfolio displayed higher downside volatility (standard deviation) than the benchmark.

The downside standard deviation of your portfolio is 3.2%, and the benchmark 2.5%.

Underweight in international equity

Generally, a well-balanced portfolio contains both domestic and international equity holdings.

Significant high yield exposure in fixed income

Your fixed income portfolio is 81.3% 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.