Find the best mix of sectors for five risk profiles, from conservative to aggressive, complete with comprehensive portfolio analysis and an investment proposal.
Different investors have different risk tolerances. The following risk tolerance questionnaire has been designed to measure an individual's ability (time horizon) and willingness (risk tolerance) to accept uncertainties in their investment's performance. The total score recommends which of the five risk profiles is most appropriate for the investor.
The examples in this questionnaire are hypothetical. The performance shown in charts and graphs does not represent the performance of any specific investment. The numbers are used to gauge your tolerance for risk and expectations for returns. The assumed returns and losses are considered reasonable, but there is no assurance the rates will be achieved. Asset allocation cannot assure a profit or protect against a loss.
Based on how you answered the risk tolerance questionnaire, the recommended investor risk profile is
Asset allocation cannot assure a profit to protect against a loss.
|S&P Sector SPDR||Investment %||Investment %||Investment||# of SPDRs||Last||Change||%Change|
|S&P Sector SPDR||Dividend
|% of Total
Ibbotson Associates provides the asset allocation guidelines consisting of U.S. Equity, International Equity, Fixed Income and Cash. The Sector allocations are intended to fulfill the U.S. Equity Portion of the aggregated portfolio. The relevant asset classes/sectors and benchmarks are displayed in the tables below. The portfolios span the risk spectrum of the efficient frontier from conservative to aggressive. In formulating diversified portfolios, Ibbotson employed a statistical technique know as optimization. The goal of optimization is to identify portfolios that maximize return for a given level of risk or minimize risk for a given level of return.
|Aggregate Asset Allocation|
|U.S. Equity Sector Allocations|
|Consumer Discretionary||S&P 500 Consumer Discretionary Sector|
|Consumer Staples||S&P 500 Consumer Staples Sector|
|Energy||S&P 500 Energy Sector|
|Financials||S&P 500 Financials Sector|
|Health Care||S&P 500 Healthcare Sector|
|Industrials||S&P 500 Industrials Sector|
|Materials||S&P 500 Materials Sector|
|Real Estate||S&P 500 Real Estate Sector|
|Technology||S&P 500 Information Technology Sector|
|Utilities||S&P 500 Utilities Sector|
|International Stocks||MSCI EAFE Trust|
|Domestic Bonds||Lehman Brothers Aggregate Bond Index|
|Cash Equivalents||Citigroup U.S. Domestic 3 Month T-Bill|
Asset allocation cannot assure a profit or protect against a loss.
*Ibbotson Associates also uses MSCI World Index, Ibbotson Associates Long-Term U.S. Government Bond Series, several CRSP Deciles and DFI (Coleman, Fisher, and Ibbotson) Synthetic Bonds to aid in determining the inputs.