Portfolio Optimizer
Portfolio optimization software is coming
The GNG Portfolio Optimizer will suggest stock and ETF portfolio weights from your goals, your limits, and the risk method you choose.
Coming soon. Create a free GNG account to use the tools available today.
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Overview
The GNG Portfolio Optimizer is coming soon. It is portfolio optimization software that will suggest how much of each stock or ETF to hold, based on your goals, your limits, and the risk method you choose. Planned modes cover portfolio construction from scratch, rebalancing holdings you already own, refining toward a target, and finding tax-loss harvesting candidates.
Mean-variance optimization is planned to pick the point on the efficient frontier that fits your targets, using expected returns that blend yield, growth, and price history. Black-Litterman, risk parity, and hierarchical risk parity, which groups holdings that move together, are among the other planned methods. Limits such as position size, sector caps, turnover, and a minimum dividend yield are intended to shape every proposal, and each result is planned to explain why it chose its weights.
Results will be research built on data and assumptions, not a promise of future returns. While the Optimizer is in development, you can test an allocation on past prices with the Portfolio Backtester and explore a range of possible outcomes with Monte Carlo Forecasting. Both are free with a free GNG account.
What you get
- Planned build, rebalance, refine, and tax-loss harvest modes
- Planned mean-variance, Black-Litterman, and risk parity
- Planned limits on position size, sectors, and turnover
- Planned income goals for dividend yield and growth
- Planned stress tests on past shocks such as 2008 and 2022
- Planned handoff of proposed weights to the Backtester
Capabilities
Planned goals and limits
Planned inputs start from a portfolio you track on GNG or a custom list of stocks and ETFs. Goals and limits are intended to cover return, volatility, dividend yield, dividend growth, position size, sector exposure, turnover, and the number of holdings.
- Guided setup for quick runs and an advanced view for full control
- Lock, keep open, or exit each holding you already own
- Caps on new positions, exits, fund weights, and cash-like holdings
- Price history windows from 1 to 10 years
- Your own market views, each with a confidence level
Planned portfolio optimization methods
The planned methods start with mean-variance, Black-Litterman, and risk parity. Black-Litterman is intended to blend market-implied returns with your own views, and risk parity to balance how much risk each holding adds. Other planned methods focus on tail losses, drawdowns, and diversification.
- Hierarchical risk parity, hierarchical equal risk, and nested clustering
- Equal risk contribution and maximum diversification
- Conditional value at risk, entropic value at risk, and conditional drawdown
- Sortino, Calmar, target-return, and target-risk objectives
- Ledoit-Wolf shrinkage to steady noisy covariance estimates
Planned risk review
Planned results include proposed weights, sector allocation, each holding's share of risk, expected return, volatility, and yield. Stress tests are planned to replay past shocks such as the 2008 financial crisis and the 2022 rate shock, so you can see where an allocation may be weak before you act.
- Factor exposure and benchmark comparisons
- Notes on why each holding received its weight
- Income projections and probability tables
- Equity, interest-rate, currency, and sector stress assumptions
- Allocation, risk contribution, and outcome charts
Planned portfolio follow-up
The planned workflow includes proposed rebalance trades for you to review and tax-loss harvesting candidates with estimated tax effects and replacement comparisons. Saved runs, side-by-side comparisons, downloadable snapshots, and a handoff to the Backtester are intended to support further review of a proposed allocation.
- Tax-lot details and wash-sale warnings for harvest research
- Saved presets and run history with rerun controls
- Baseline allocation drift settings with email and push preferences
- GNG Analyst explanations of setup and results
- Responsive input and result layouts for desktop and phone use
How it works
Planned goal and stock list
The planned flow starts with a goal, such as building a new portfolio or rebalancing one you own, plus the stocks and ETFs to consider and a risk profile.
Planned limits and rules
You will set position, sector, turnover, and income limits, mark holdings to keep or exit, and add tax assumptions where they apply.
Planned results review
The planned result will pair suggested weights with risk measures, stress tests, and any trades needed to reach them.
Research available today
Use the Backtester to test a historical allocation or Monte Carlo Forecasting to explore outcome ranges while the Optimizer remains coming soon.
Common questions
- When will the Portfolio Optimizer be available?
- The Portfolio Optimizer is coming soon. It is not open to members yet, and no launch date or subscription plan has been announced.
- What is portfolio optimization?
- Portfolio optimization is choosing how much of each holding to own so a portfolio fits a goal, such as the highest expected return for its risk, within limits you set. Mean-variance optimization picks a point on the efficient frontier. A portfolio optimizer runs that math.
- What will the GNG Portfolio Optimizer do?
- It is being built to suggest portfolio weights from your goals and limits. Planned modes cover building a new portfolio, rebalancing holdings you already own with limits on turnover, refining toward a target, and finding tax-loss harvesting candidates.
- Which portfolio optimization methods are planned?
- Planned methods include mean-variance, Black-Litterman, risk parity, hierarchical risk parity, maximum diversification, and approaches that target tail risk, drawdowns, or a set return or volatility.
- Does portfolio optimization guarantee better returns?
- No. Proposed weights and risk estimates will depend on data, model assumptions, and the constraints you choose. They are intended for research and cannot guarantee returns or prevent investment losses.
- Is there a portfolio optimization tool I can use now?
- Not on GNG yet. While the Optimizer is coming soon, the Portfolio Backtester, Monte Carlo Forecasting, and Portfolio Tracker are free with a free GNG account for testing an allocation, modeling outcomes, and reviewing holdings.
Create a free GNG account to use the Backtester and Monte Carlo Forecasting today.
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