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Portfolio Efficiency

Accessible via the Pie Chart Icon on your My Portfolio dashboard, this card grades the structural health of your portfolio.

Portfolio Efficiency Card

1. The Metrics​

Efficiency Score​

The large number at the top (e.g., 73) is your Efficiency Score.

  • Goal: Aim for a score of 100.
  • Calculation: This scores how well you are balancing your capital across the S&P 500 sectors compared to the market benchmark.

Meaningful Positions​

Below the score, you see a count (e.g., "22 of 30 meaningful positions").

  • Meaningful: A position is considered "meaningful" if it represents a significant enough portion of your portfolio to matter. Buying $1 of a stock won't count here.
  • Target: We encourage building a portfolio of ~30 solid positions to achieve proper diversification.

2. Sector Capital Comparison​

The table provides a clear breakdown of your exposure vs the Market (S&P 500).

  • You (Column 1): The percentage of your cash allocated to each sector.
  • Sectors (Column 2): The 11 GICS sector codes (e.g., XLK for Tech, XLV for Health Care).
  • Market (Column 3): The benchmark allocation.

How to use this:

  • Identify Gaps: If the Market has 20% in Industrials (XLI) and you have 27%, you are "Overweight."
  • Find Openings: If you have 0% in Financials (XLF) but the market has 13%, you might want to look for opportunities there to balance your score.