Creating a custom Portfolio

We offer several “pre-canned” portfolios in our “Core Portfolio” and “Portfolio Library”. While we put a lot of brain and effort into designing these, they cannot and will not serve everybody’s risk/return profile or personal preference. And they are not meant to – rather they should serve as starting point for your very own, personalized custom Portfolio.

As we just implemented (yet) another change to our Core Portfolios we’re getting many requests on how to return to the old portfolio versions, or how to customize them. So here three quick ways on how to build your own portfolio – in 2 minutes or less. Well, speaking technically, the thought process should take an entire rainy weekend, or two.

For below videos I’m reconstructing the Aggressive Core Portfolio as of last month, here also the other allocations:

Conservative:
BUG: 24
NAS100: 40
DOW30: 36

Moderate:
NAS100: 50
USMarket: 10
DOW30: 40

Aggressive: <– Used in below videos
NAS100: 55
UISx3: 15
DOW30: 30

Modify an existing Portfolio

Grab one of the existing portfolios from the “Core Portfolio” or “Portfolio Library” section. Click the “Modify as my portfolio” button [pencil icon], modify the used assets, set allocation percentages, review, if necessary rinse & repeat, click “Save” and voilá: You have your own portfolio, as conservative or aggressive as you prefer.

Use the Portfolio Builder

Pick our Portfolio Builder, select the assets to be included, hit continue, select whether to optimize the allocations or to set them manually (which I use in the video), preview results, click “Save as my Portfolio”, and here you go: Your own custom portfolio is ready.

Using the Portfolio Optimizer

This by far is the most flexible approach, however it does not allow to manually set your percentages. But much better: It allows you to select from a selection of portfolios which all are close to the optimal CAGR for a certain bucket of volatility, our very own “efficient frontier”.

Pick our Portfolio Optimizer, select the assets to be included, select the period for the optimization (“max”, i.e. 2007-2020 here), select the maximum number of strategies to be included in the portfolio, and whether to optimize for volatility (used here) or drawdown).

The optimizer will present you with a list of different combinations of the included strategies, each with a different risk/return profile, which you can also see in the plots below the table. Pick one of the combinations with a click on the “magnifying glasses”, and once you’ve found your candidate hit the pencil icon top right to save it.

Warning: Highly addictive, easy to get lost for hours!

For the early viewers of this post, no, there is no sound in the videos. For the later viewers, no, beside the easy-listening music I’m still working on there is no voice. :-)

Happy portfolio creation!

Best,
Your Logical Invest team


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