Our methodology
My Virtual Advisor recommends a target asset allocation based on your Investor Profile and the amount of help you are looking to receive. Here is how each of these recommendations is determined.
Asset allocation
My Virtual Advisor provides a recommended asset allocation based on:
- The historical performance of various asset classes
- Your Investor Profile, including your goals, risk tolerance, and time horizon
Asset allocations, risk profiles, and investor risk tolerance questionnaires may be similar or different based on your selected investment solution.
Risk and reward potential
- LOWEST
- MODERATE
- HIGHEST
Asset allocation strategies contain one or more of the following asset classes:
Large-cap stocks
Investments recommended in this category include the largest publicly traded U.S. equities based on market capitalization. Large-cap equities tend to have high to moderate liquidity, and are generally sensitive to both economic sector and industry group performance.
Fixed income securities
Investments recommended in this category include U.S. investment-grade fixed-rate bonds, including government, municipal, and corporate securities, mortgage pass-through securities, and/or asset-backed securities.
Small- and mid-cap stocks
Investments recommended in this category include small- to medium-sized U.S. equities based on market capitalization. These equities tend to have low to moderate liquidity, and are generally sensitive to both economic sector and industry group performance.
Cash and cash alternatives
Investments in this category are intended to provide current income and preservation of principal. Cash investments are appropriate for investors seeking stability and liquidity from investment assets.
International stocks
Investments recommended in this category include non-U.S. equities. International investments carry currency and country risk in addition to stock market volatility.
Other securities
Investments in this category include securities that are classified outside of the domestic equity, international equity, and fixed income categories. This includes Real Estate Investment Trusts, globally oriented mutual funds and ETFs, and mutual funds and ETFs that utilize non-traditional strategies that may entail the use of derivative instruments.