To help you determine whether a Select Themes portfolio is aligned to your risk appetite, we provide the portfolio’s overall risk rating for your review.
We calculate this rating by using the weighted average risk scores of the individual ETFs within your portfolio. Each ETF in our investment universe is first given a risk score between 1 to 5 based on its underlying asset class, geography and sector exposures. A score of 1 is very low risk; a score of 5 is very high risk.
For more details on how portfolio risk score is calculated, refer to our blog article.
Please be advised that all forms of investments carry a certain degree of risk. Clients should consider their personal risk appetite and evaluate it against the risk rating of each Select Themes portfolio.
In general, thematic portfolios should be used to complement your core investment holdings and should make up less than 30% of your overall portfolio allocation.