Like a doctor who uses X-ray imagery to get an under-the-surface view, investors can get a better picture of the health of their holdings by using the Portfolio X-Ray tool on tdameritrade.com.
“The Portfolio X-Ray tool lets you take your portfolio in as a whole, drilling into holdings and showing where you are exposed by X-raying your mutual fund and ETF holdings,” says John Bell, Director of Platform Management for TD Ameritrade Investment Management, LLC. “It’s useful for figuring out what your real exposure is as opposed to what you think it is.”
Here’s how the Portfolio X-Ray can give you a picture of the overall health of your current allocations.
FIGURE 1: PORTFOLIO X-RAY TOOL.
The Portfolio X-Ray tool gives a visual snapshot of a portfolio’s current allocations. Source: tdameritrade.com. For illustrative purposes only.
Portfolio X-Ray Overview
To access the platform just log in to your account on tdameritrade.com and go to Research & Ideas > Mutual Funds > X-Ray. Portfolio X-Ray loads automatically with your existing holdings, and shows your asset allocation, analyzed against the S&P 500 as the default benchmark. To change the benchmark, choose a different one from the “Select a benchmark” menu. It’s important to note that the X-Ray tool analyzes mutual funds, U.S.-based stocks, ADRs, plus cash and bond positions when entered using a ticker CASH$ or BOND$, respectively. No other security types are analyzed.
The X-Ray tool helps you analyze your portfolio from various angles. On the Portfolio X-Ray page, you can see your asset allocation, followed by a breakdown of your portfolio’s holdings across world regions. The page includes stock sectors, stock style and bond style, along with stock stats and bond stats. You’ll also find a deeper analysis of the stock type across your portfolio, along with an itemization of fees and expenses. A list of your top 10 holdings as a percentage of your total assets is displayed as well.
Select the X-Ray Interpreter tab at the top of the page to help make sense of the analysis. You’ll see the same categories found under Portfolio X-Ray, but here X-Ray specifically points out areas of your current portfolio that may be over or under allocated to a comparison benchmark or how the expenses of your portfolio compare to the industry average.
Select the Change holdings link to view changes that might affect your portfolio, or to analyze a hypothetical portfolio. Then select the Add multiple tickers link at the top of the page to add new holdings. In the pop-up window, add your list of tickers separated by a comma or space. Select “Apply equal dollars per ticker for a total of” and type an amount. After entering your changes, select “Finish,” and then select “Next.” The changes you made update and display in Portfolio X-Ray, giving a view of what your portfolio overview would look like if you actually made these changes. (Note: Making these changes in the X-Ray tool won’t result in buying or selling the positions you entered.)
Select the Stock Intersection tab for a view of your stock holdings across your portfolio, including stocks held by various mutual funds you may be invested in. This view is particularly useful for digging up hidden redundancies in your holdings you might not be aware of. “Investors may think they’re diversified, but they can find out that while they have an individual holding in Alphabet, Inc., they may have four mutual funds or ETFs that are invested heavily in Alphabet, Inc., too,” says Bell. “That could be a problem in a technology industry downturn that you might want to know about.”
Advisory services provided by TD Ameritrade Investment Management, LLC, a registered investment advisor. Brokerage services provided by TD Ameritrade, Inc. TD Ameritrade Investment Management provides discretionary advisory services for a fee. Risks applicable to any portfolio are those associated with its underlying securities. For more information, please see the Disclosure Brochure (Form ADV Part 2A).