Portfolio Risk & Return

Equities

Another word for stocks: shares of ownership in companies. An equity allocation is the part of a portfolio invested in stocks, whether directly or through funds. Equities have historically delivered higher long-run returns than bonds or cash, as payment for carrying more risk — larger swings and deeper drawdowns along the way. In a portfolio analysis the equity share is usually the main driver of both volatility and beta.

Educational information, not investment advice. See it applied across the screener →