Morning,
I’m trying to create a portfolio that has a diverse level of risk and reward.
Whilst I understand certain stock will have different risks, depending on many things I’m a bit confused about the EFT’s here.
Each EFT comes with a guide risk and Reward factsheet but why are almost all the ones I see here either number 6 or 7 (High Risk). But when compared to places like the FT the guide number is different.
I know every institution might have different views to each EFT but almost all here are considered high ?
Any Ideas ?
Do you have an example of one that has a different risk rating on 212 and FT?
If you look closer, you will probably find the rating comes from a different source - Morningstar or FT, or one may be out of date so thats potentially where the differences are that you see.
Either way, depending on your length of investment, most typically pick a split of Equities(long) and Bonds(short), and also depending on their risk appetite - Equities(high) and Bonds(low). Only you will know what is right for you, but costs also factor into it as well.
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