How is the Down Market stress test modeled in Income InSight?

The Down Market stress test is modeled on the assumptions made within the Asset Classes tab, under the Portfolio Assumptions section, on the Income InSight home page. 

The Asset Classes are the following: 

  • US Stock                    SPDR S&P 500 ETF
  • Bonds                         Vanguard Total Bond Market Index Fund
  • Real Estate                Vanguard Real Estate Index Fund ETF
  • Metals                        SPDR Gold Shares
  • Foreign Stock           iShares MSCI EAFE ETF

In the highlighted instance below, assets mapped to US Stock in the Stress Test would be based on the Down Market performance as outlined.  

With SmartRisk in addition to Income InSight, the down-market will be based on "heavy tailed" methodology used in the SmartRisk analysis and be based on the actual portfolios entered for the client.  Ultimately, the value added by adding client specific investment and portfolio data is worth the effort to obtain it, and again, RedTail importation of data is available.