Q: I read in the Q&A that portfolio analytics does not give a sector breakdown for HXS.
Does this mean that the analysis of my portfolio indicating which sectors i need to increase or decrease are inaccurate?
Does this mean that the analysis of my portfolio indicating which sectors i need to increase or decrease are inaccurate?
5i Research Answer:
Our data provider can only pick up on what is provided by companies and ETFs. With HXS, because it is a total return fund, its holdings are derivatives and cash, not actual stocks. It thus reports a large cash position and its derivatives and not a sector breakdown, even though its derivatives target the S&P 500. Unless HXS provides a different breakdown, HXS will be inaccurate in its reported holdings. The best solution here is to use a proxy ETF such as ZSP, which actually holds the stocks in the S&P 500. The dividend variation will be a bit different vs HXS (no dividends) but it will track the S&P 500 exposure more effectively.