Watch List or Portfolio? (2024)

Question: I've noticed that Morningstar.com's Portfolio Manager offers me two options--"Create a Portfolio" or "Create a Watch List." What are the differences and how do I know which one to pick?

Answer: Morningstar.com's Portfolio Manager tool allows investors to input and track holdings in two different ways--by creating a watch list or a transaction portfolio. Below, we will highlight the unique features of both.

What Is a Watch List?
The watch listallows investors to create a list of investments to monitor on anintraday, daily, or longerbasis. (Click here to begin the process.) Watch lists require only that you input securities by name or ticker. (If you don't know the ticker, simply start typing the security's name, and our suggestion box will help you find the right holding.) If you like, you can also input a specific number of shares, purchase price, and commission, but these are not required for a watch list. Indeed, many Morningstar.com members use watch lists to track securities they don't yet own.

Since price movements are updated throughout the day, watch lists provide a quick and easy way to get an at-a-glance view of how the securities are performing on a daily or intraday basis, track performance over time,and readpertinent news on your watch list holdings. You can also use the watch list to test-drive several model portfolios before tinkering with your actual holdings or saved transactionportfolios.

Watch List Key Features
Watch lists can hold up to 100 fund, stock, or ETF holdings, plus20 cash and 20 bond positions for a total of 140 holdings per watch list. (Premium Members can enter up to 200holdings plus40 cash and 40 bondpositions for up to 280 names per portfolio. Note that investors can input up to 25 watch lists in their Portfolio Manager.

Once you create a watch list, several notable Premium features allow you to look under the hood. Our X-Ray tool, for example, allows investors to assess a watch list's asset and sector allocations to see if there's significant overlap in holdings, as well as evaluate its level of diversification. Investors can also use the Asset Allocator tool to calculate the probability of meeting an investment goal based on the watch list portfolio's total value, investment mix, and their savings rate. Premium Members can alsotrackMorningstar's proprietary ratings, Pick/Pan designations,equity fair value estimates, and more for their watch list holdingsby clicking on the "Views" tab and then selecting "Insights" from the dropdown menu.

For more, click the "Tools" tab on the gray toolbar for a dropdown menu of additional features that are available to both free and Premium Members.

Alert Options
Investors also have the ability to receive a combination of intraday or nightly watch list alerts of their choosing. Once you input securities into a new watch list, you'll have the option to choose your watch list monitoring features. By checking the "Watch List Updates" box, youwill receive a daily e-mail update of how your watch list investments performed that day, as well as any related articles. Check off the "Alert" box to receive e-mail alerts for your individual watch list holdings, such as changes in star rating, expense ratio, stock price, or fund manager. To add additional alerts or to change your watch listalert settings, click on the "Alert" tab on the gray toolbar above your watch list and select the watch list option from the dropdown menu.

What Is a Transaction Portfolio?
Whereas a watch list portfolioallows you to track investments that you are interested in, a transaction portfolio is a much more robust tool that gives you the ability to monitor holdings that you already own. Transaction portfolios allow more details to be added to the portfolio, allowing for greater historical tracking and analysis. (Click here for a tutorial video on how to create a new transaction portfolio.)

Key Features
As is the case with watch lists, investors can enter up to 100 fund, stock, orETF holdings, plus20 cash and 20 bond holdings for a total of 140 positions per transaction portfolio. Up to 25 portfolios can be created.

Atransaction portfolio allows investors to access all the features available for watch lists but also gives them the option to key in specific purchase dates and subsequent transactions (buys and sells). As such, transaction portfolio features support the ability to accurately track your historical performance and cost basis. Moreover, Morningstar members who have entered portfolios have the ability to compare total return versus personal return via the "My Performance" tab. (Total return measures the theoretical performance of your holdings for a specified period of time; whereas,personal return accounts for the capital that you added or withdrew from your transaction portfolio throughout the specified time period).

Alert Options and Portfolio Monitor
After you create a new portfolio, you'll be directed to a page where you can opt to receive portfolio updates or alerts for your portfolio holdings. You can receive the sameintraday and nightly alerts that are availablefor watch lists. In addition, Premium Members can receive our Portfolio Monitor report on theirtransaction portfolios. Portfolio Monitor is a monthly PDF report that provides a comprehensive, customized summary of your portfolio, sent automatically to your e-mail inbox. It details your portfolio's top contributors and detractors, offers a breakdown of your current asset allocation (including sectors, regions, and investment styles), andincludes adigest of the latest Morningstaranalyst commentary on your holdings.To learn more about Portfolio Monitor, visit our Tutorial Center, expand "Portfolio Manager," and select "Monitor."

Turn One Into the Other--Or Combine Both
Keep in mind that you can turn your watch list into a portfolio--or vice versa--by clicking on the "Create" tab in Portfolio Manager and choosing the "Convert to Watch List (or Portfolio)" option. Also check out the "Combine" feature within the "Create" tab, which allows you to merge multiple watch lists and portfolios into a newsingle one (the originals are also retained). For more information on the "Combine" feature, read this article by Christine Benz.And click here for answers to additional frequently asked questions regarding Portfolio Manager.

Watch List or Portfolio? (2024)

FAQs

Watch List or Portfolio? ›

A watchlist is similar to portfolio, but only contains a list of tickers—no quantity or buy price information is entered. A watchlist is generally used to track securities that you are interested in but don't own.

What is the difference between a watchlist and a portfolio? ›

What is the difference between a Portfolio and a Watch List? A Portfolio contains detailed data on holdings including purchase date, shares, and price, and allow for greater historical tracking and analysis. A Watch List can be used to track stocks/funds of interest and only requires entering ticker symbols.

What is an example of a watch list? ›

Meaning of watch list in English. a list of people or things that must be watched closely, for example because they might be dangerous or in danger, or because you want to see what happens to them: They were searching for two men on the government's terrorist watch list who they knew had entered the United States.

What is the point of a watchlist? ›

A watchlist is a set of securities that an investor monitors for potential trading or investing opportunities. Many brokerage and financial platforms allow for easy construction and viewing of watchlists.

What is a watch list in investing? ›

Watch list. A list of securities selected for special surveillance by a brokerage, exchange, or regulatory organization; firms on the list are often takeover targets, companies planning to issue new securities, or stocks showing unusual activity.

How many stocks should be on your watch list? ›

A lot of people like to keep track of 10-20 stocks in their watchlists. For me, I find that could be too many stocks to pay attention to, as you can get overwhelmed with the data points from multiple stocks and if you try to find trades on each stock that you see, you could be at risk of overtrading.

How many stocks should be on your watchlist? ›

Setting up a Watchlist

Watchlists can align with the amount of time the participant has to trade and follow the financial markets. A part-timer playing a few positions each week can keep things simple, culling a list of 50 to 100 issues to track on a daily basis.

Can Googling something put you on a watch list? ›

But if you are consistently looking up words, instructional materials, or other suspicious search terms that may indicate interest in criminal behavior, you may end up on a government watchlist. Furthermore, if you are charged with a crime, your search history may be used to show intent.

What is another word for watch list? ›

What is another word for watch list?
watchlistobservation roster
screening rostersurveillance list
surveillance registertarget list
tracking inventorytracking list
watch registerno-fly list
1 more row

What is a watch list compliance? ›

Watchlist screening confirms the legitimacy of customers or business partners and ensures they are not on any restricted or prohibited lists. The process helps organizations establish the true identity of their customers, reducing the risk of financial fraud and ensuring regulatory compliance.

Does the government tell you if you are on a watchlist? ›

Most people on the terrorism watchlist are not Americans, and they have no known connection to the U.S. For security reasons, the TSC does not confirm anyone's status on the watchlist.

How do you keep a stock watchlist? ›

Keep Your Watchlist Simple and Fresh

Go through your list often. Plan a personal schedule of how often you'll comb through your lists to see if stocks still match your trading criteria. What should you look for? Some traders like to start with big percent gainers, then filter by float, volume, and other indicators.

What does it mean to be under watchlist? ›

noun. 1. a list of things to be monitored, esp in order to prevent loss, damage, etc. 2. a list of people or organizations to be kept under surveillance, esp because they are suspected of wrongdoing.

How to create a watch list? ›

Procedure
  1. Select one or more rows in the event list.
  2. Right-click on the alert and click Create watch list.
  3. In the General tab, set the following watch list properties: Name. ...
  4. In the Conditions tab select one of the following properties: Inclusive. ...
  5. Select the columns to base the watch list on.
  6. Click Create.

What is a watch list in project management? ›

A watchlist serves as a real-time monitoring system for potential risks. It allows risk managers to stay abreast of changing circumstances and adapt their strategies accordingly.

What is a portfolio in cinema? ›

As a filmmaker, your portfolio is arguably your most important asset. It is your visual and creative resume, showcasing your skills, style, and versatility. A well-curated portfolio demonstrates your technical proficiency and tells a compelling narrative of your artistic journey and vision.

What does watchlist mean on Amazon? ›

The Watchlist is a convenient place to save movies from your collection in a list to remind you to watch later. To add or remove movies to your Watchlist: Go to My Movies and select a movie you would like to add to your Watchlist. Select the "+ Watchlist" button to add that movie to your Watchlist.

Why do they call it a portfolio? ›

The term itself comes from the Italian word for a case designed to carry loose papers (portafoglio), but don't think of a portfolio as a physical container. Rather, it's an abstract way to refer to groups of investment assets.

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