Diversification, risk and costs

What you will see

• Diversification: by asset type, by broker, by sector against the S&P 500, by country and by currency, and how many positions really matter (equivalent positions).
• Risk: volatility, worst drop and how long it took to recover, beta, Sharpe, Sortino, value at risk and a crisis test.
• Costs: what you pay in fees and fund costs, with cheaper alternatives.

How to read it

• Beta 1 = moves like your benchmark; 1.5 usually moves 50 % more; 0.5, half as much.
• One-day value at risk: 95 % of your past days were better than that figure. It is not the worst case.
• Drops are measured without counting your contributions or withdrawals.

Common problems and questions

It says there is not enough history.

Volatility, Sharpe and value at risk need at least 20 business days of history.

Risk has a lock.

Risk and costs depend on your plan. See Plans.