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Personalize Your Portfolio with Exclusions
Pave Product
June 20, 2024

Personalize Your Portfolio with Exclusions

Investing is not just about growing wealth; it's about aligning your money with your values and vision. Pave offers granular portfolio personalization through the ability to exclude specific industries and stocks from your portfolio. This isn’t just a feature - it will revolutionize how you invest. Here are some reasons why:

  1. Ethical Investing: You might be passionate about certain causes and want your investments to reflect your values. For example, if you're concerned about climate change, you can exclude fossil fuel companies from your portfolio. The same goes for companies involved in industries such as tobacco, firearms, or gambling.
  1. Company Governance: If a company ever lands in your portfolio that is managed in a way you disagree with, simply exclude it. Not enough diversity in leadership positions? Poor track record when it comes to properly paying workers? No matter what it is, if you don’t agree with how a company does business, remove it and Pave will find a way to reoptimize your portfolio to fit your financial goals.
  1. Personal Preferences: Sometimes, it's simply a matter of preference. Perhaps you have a personal aversion to certain brands or companies due to past experiences. With our app, you can ensure your money doesn’t support them.

How It Works

Pave’s intuitive interface makes it easy to personalize your portfolio. You will be prompted to input any exclusion preferences when you first set up your portfolio and you can also easily adjust these at any time. Simply navigate to the Investment Preferences section in your “Account” tab and choose the assets or industries you want to avoid. You can exclude anything from individual companies to entire sectors.

Once you've set your exclusions, our app will automatically adjust your portfolio, reallocating funds and choosing assets accordingly to ensure your investments align with your preferences while keeping your portfolio aligned with your risk tolerance. 

A Word of Caution

While the ability to exclude certain assets and industries is powerful, using this feature wisely is important. Here’s why:

  • Poor Diversification: Excluding too many sectors can lead to a lack of diversification, which is a cornerstone of risk management in investing. A less diversified portfolio can be more susceptible to market swings and sector-specific downturns.
  • Missed Opportunities: By excluding entire industries, you might miss out on high-performing stocks or sectors. It’s crucial to balance your personal preferences with potential investment opportunities.

Pave’s exclusion feature empowers you to take control of your portfolio like never before. Whether you want to make ethical choices, manage risk, or simply follow your personal preferences, you now have the tools to invest on your terms.