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By default, when you click into the Investments tool you’ll see the Stocks analysis tool. While we can’t say that one investment strategy is the best or that there is an ideal mix of the various types of stocks in your portfolio, the stock analysis tool will help you understand and visualize your particular situation.

To view the stock analysis tool:

  1. Navigate to the Investments tab.
  2. Click the Analysis button on the top left of the tool.

You'll see a grid that visualizes your stocks based on Valuation and Market Capitalization.



The horizontal axis of the stock analysis tool groups stocks into 3 valuation categories:

  1. Value: These are stocks that are seen as being underpriced by the market, or cheaper than they should be. Investing in these stocks may yield a return as the price goes up.
  2. Core: These are stocks that seem to have characteristics of both value and growth stocks.
  3. Growth: These are stocks for companies that have shown strong growth over the last few years and are likely to continue growing at a fast clip. Investing in these stocks may yield a return as the company's overall size and importance increases.

Market Capitalization

The vertical axis represents a company’s market capitalization—that is, the total market value of all the company’s stock. The market “cap” can give you an idea of how much a company is worth, as well as an idea of how desirable its stock is to other investors. A balanced portfolio will have stock from large-, medium-, and small-cap companies.

  • Large-cap: These companies are typically worth tens of billions of dollars. More specifically, the analysis tool defines large-cap companies as those which represent the top 70 percent of the total market capitalization in a given geographic area. Large-cap companies are often the most important, most established, better-known, most stable, or most dominant in a given industry. They are often considered less risky by investors, but may not bring in the highest returns.
  • Medium-cap: These companies are typically worth a few billion dollars, but probably less than $10 billion. More specifically, these companies represent the middle 20 percent of total market capitalization in a given geographic area. Mid-cap companies are often thought of as more or less established and important in their given industry. They may not be the most well-known, but they are nevertheless important and are expected to increase their importance, competitiveness, and dominance in the future. They are usually more risky than large-cap stocks, but less risky than small-cap stocks.
  • Small-cap: These companies are typically worth less than a billion dollars. More specifically, they represent the bottom 10 percent of total market capitalization in a given geographic area. Small-cap companies are often either newcomers to a particular market or perhaps serve a niche market in an industry. They may not be well-established, especially stable, or important within a particular industry, but they may also be poised to grow quickly or become much more established. While they offer an opportunity for high returns, they are nevertheless considered risky by most investors.

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