For a Passive Portfolio, the typical document list includes:

 

1. Investment Policy Statement (IPS):

• A formal document outlining the portfolio's goals, investment strategy, risk tolerance, and time horizon, with a focus on long-term growth through passive management strategies.

 

2. Index Selection Criteria:

• Documentation of the criteria used to select indices or benchmarks that the passive portfolio will track, such as the S&P 500, Nasdaq, or other index funds.

 

3. Performance Reports:

• Reports tracking the performance of the portfolio relative to its benchmark index, including returns, volatility, and tracking error over time.

 

4. Asset Allocation Plan:

• A document outlining the portfolio's allocation across asset classes (stocks, bonds, etc.) based on the chosen indices or ETFs.

 

5. Rebalancing Strategy:

• A plan describing the rebalancing approach to ensure the portfolio remains aligned with the target asset allocation (e.g., annual rebalancing or when asset allocations deviate by a certain percentage).

 

6. Expense Ratio Reports:

• Documentation of the expense ratios for the passive funds or ETFs in the portfolio, highlighting their cost-effectiveness.

 

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