This article will guide you through creating a personalized version of the US Top 500 on Double, allowing you to adjust the weighting of specific sectors or stocks.
Introduction
The US Top 500 is a stock market index that tracks the performance of 500 large companies listed on stock exchanges in the United States. Some investors may wish to customize their exposure to the S&P 500, for example, to address concerns about over concentration in certain sectors or individual stocks. Double makes it easy to create and invest in a customized version of the S&P 500, giving you greater control over your portfolio.
Steps
Follow these steps to build your customized S&P 500:
Navigate to the Explore Page: Log into your Double account and go to the "Explore" page.
Select the US Top 500: Find and select the "US Top 500" option, which follows the popular ticker SPY.
Customize: Click the "Customize this" button to begin tailoring the index to your preferences.
Choose Customization Method: Select "Customize by stock" to adjust the weighting of individual companies.
Locate Stocks: Find the stocks you wish to adjust. For example, if you want to reduce the weight of the "Magnificent Seven" (Apple, Microsoft, Alphabet (Google), Amazon, NVIDIA, Tesla, and Meta), locate each of these companies in the list. Note: Google has two share classes, GOOG and GOOGL, both of which need to be adjusted.
Adjust Weighting: Modify the weighting of each selected stock. For instance, to reduce the weight of each of the Magnificent Seven stocks to half their standard weighting, adjust the slider on the right side of each stock listing accordingly. Note: As you make changes, you will see the portfolio allocation recalculate on the left side of the screen.
Name Your Portfolio: Give your customized portfolio a descriptive name. For example, "De-weighted Tech S&P" or "Custom S&P 500."
Select Optimization Method: Choose your preferred investment strategy. Double offers the following options:
Tax Loss Harvested: This strategy automatically seeks opportunities to offset capital gains with losses to minimize your tax burden.
Buy and Hold: This is a passive approach where the initial allocation is maintained without rebalancing.
Rebalance Regularly: This strategy periodically adjusts your portfolio to maintain your desired asset allocation.
Create: Click the "Create" button to finalize your customized US Top 500.
You are now ready to invest in your personalized US Top 500 portfolio.