/finance screen — Investment Screener
DISCLAIMER: For educational/informational purposes only. Not financial advice. This is not a recommendation to buy any specific security.
Purpose
Help the user build or refine an investment portfolio using proven, evidence-based screens. Output is a model portfolio with specific ticker examples, allocation weights, and expected behavior — not a buy/sell recommendation.
When To Trigger
- User types
/finance screen <strategy>or/finance screen(then prompts for strategy) - User asks "what should I invest in?", "build me a portfolio", "what ETFs for X?", "low cost index fund portfolio"
- User wants to add diversification to existing holdings
Pre-Built Screens
1. Dividend Growth Screen
Goal: Companies with rising dividends, sustainable payout ratios, durable moats.
Criteria:
- 10+ consecutive years of dividend increases (Dividend Aristocrats / Achievers)
- Payout ratio < 60%
- Free cash flow growth > 5%/yr
- Dividend yield 2-5%
- Debt-to-equity < 1.5
Representative Holdings:
- JNJ, PG, KO, PEP, MMM (Dividend Aristocrats)
- VIG (Vanguard Dividend Appreciation ETF, expense ratio 0.06%)
- SCHD (Schwab US Dividend Equity, 0.06%)
- DGRO (iShares Core Dividend Growth, 0.08%)
Expected: 8-10% annualized total return, 2-3% yield, lower volatility than S&P 500.
2. Three-Fund Index Portfolio (Bogleheads)
Goal: Maximum diversification, lowest cost, set-and-forget.
Allocation (age-based):
- US Total Stock Market: (110 - age)% * 0.6
- International Total Stock: (110 - age)% * 0.4
- US Total Bond Market: age%
Example for age 35: 45% US stocks / 30% International / 25% Bonds
Representative Holdings:
- VTI (Vanguard Total Stock, 0.03%) or FSKAX
- VXUS (Vanguard Total International, 0.07%) or FTIHX
- BND (Vanguard Total Bond, 0.03%) or FXNAX
Expected: 7-9% annualized real return, broad market exposure, near-zero idiosyncratic risk.
3. Bond Allocation Screen
Goal: Stability, income, ballast against equity drawdowns.
Sub-allocation:
- Total US Bond Market (intermediate): 50%
- Treasury Inflation-Protected (TIPS): 20%
- Short-term Treasuries (cash buffer): 15%
- High-yield corporate (small allocation, optional): 10%
- International bonds (USD-hedged): 5%
Representative Holdings:
- BND, AGG (total bond market)
- VTIP, SCHP (TIPS)
- VGSH, SHY (short-term Treasury)
- JNK, HYG (high yield — flag as higher risk)
- BNDX (international bonds, USD-hedged)
Expected: 3-5% annualized return, low correlation to equities, downside protection.
4. Real Estate (REITs)
Goal: Real estate exposure without owning property; inflation hedge; income.
Allocation: Cap REIT exposure at 5-15% of portfolio.
Representative Holdings:
- VNQ (Vanguard Real Estate, 0.12%)
- SCHH (Schwab US REIT, 0.07%)
- REET (iShares Global REIT, 0.14%)
- O (Realty Income — individual stock, monthly dividend)
Sub-sectors to consider:
- Residential, Industrial (data centers, logistics), Healthcare, Self-Storage
Expected: 7-9% return, 3-4% yield, sensitive to interest rates.
5. International Diversification
Goal: Reduce home-country bias; capture global growth.
Allocation:
- Developed International (Europe, Japan, Asia-Pac): 60% of international sleeve
- Emerging Markets: 30%
- International Small-Cap: 10%
Representative Holdings:
- VEA, IXUS (Developed International)
- VWO, IEMG (Emerging Markets)
- VSS (International Small-Cap)
Rule of thumb: 30-40% of equity sleeve in international.
Expected: 6-9% return, higher volatility from currency + EM exposure.
6. ESG / Sustainable
Goal: Environmental, social, governance screen; align portfolio with values.
Representative Holdings:
- ESGV (Vanguard ESG US Stock, 0.09%)
- VSGX (Vanguard ESG International, 0.12%)
- ESGD (iShares ESG Developed Markets, 0.20%)
- SUSL (iShares MSCI USA ESG Leaders, 0.15%)
Caveats to flag:
- ESG definitions vary; check fund methodology
- Some ESG funds underweight energy, may underperform during energy bull runs
- Expense ratios higher than vanilla index funds
Expected: Returns close to broad index minus 0.1-0.3%/yr; tracking error.
Custom Screen
If user specifies custom criteria, accept inputs like:
- Sector preference (tech, healthcare, energy, etc.)
- Geographic focus (US only, ex-US, emerging)
- Factor tilts (value, growth, momentum, quality, small-cap)
- Yield target (e.g., "3%+ dividend yield")
- Expense ratio cap (e.g., "under 0.20%")
- Risk tolerance (conservative / moderate / aggressive)
- ESG requirements
Combine with relevant pre-built screens and provide a customized allocation.
Required Inputs
- Strategy choice (one of the 6 above, or "custom")
- Investable amount (lump sum or monthly contribution)
- Time horizon (years until needed)
- Risk tolerance (1-10 scale or conservative/moderate/aggressive)
- Age (for age-based allocations)
- Account type (taxable / IRA / Roth / 401k — affects tax efficiency choices)
- Existing holdings (to avoid overlap and surface concentration)
Output Format
Save to FINANCE-SCREEN.md.
markdown# Investment Screen: [Strategy Name] **Generated:** [Date] **Investable Capital:** $X (lump) + $Y/mo **Time Horizon:** [N] years **Risk Profile:** [Conservative / Moderate / Aggressive] **Account Type:** [Taxable / IRA / Roth / 401k] > **DISCLAIMER:** For educational/informational purposes only. Not financial advice. Not a recommendation to buy any specific security. Always consult a licensed financial advisor. --- ## Strategy Summary [2-3 sentence description of the strategy, philosophy, evidence base] ## Recommended Allocation | Asset Class | Weight | Vehicle | Expense Ratio | Example Ticker | |-------------|--------|---------|---------------|----------------| | US Stocks | X% | ETF | 0.03% | VTI | | International | X% | ETF | 0.07% | VXUS | | Bonds | X% | ETF | 0.03% | BND | | ... | | | | | **Total Expense Ratio (weighted):** X.XX% **Annual Cost on $100K:** $XX ## Dollar Allocation If investing $X today: | Holding | Amount | Shares (approx) | |---------|--------|-----------------| | VTI | $X | Y | | ... | | | ## Expected Behavior | Metric | Estimate | |--------|----------| | Expected annual return | X-Y% | | Expected volatility (std dev) | X% | | Max drawdown (historical) | -X% | | Expected dividend yield | X% | | Correlation to S&P 500 | X.XX | ## Tax Efficiency Notes - [Which holdings belong in taxable vs tax-advantaged accounts] - [Tax-loss harvesting candidates] - [Foreign tax credit considerations for international] - [Qualified dividends vs ordinary income] ## Rebalancing Rules - **Frequency:** Annually, or when any allocation drifts >5% from target - **Method:** Rebalance with new contributions first (tax-efficient); only sell if drift is severe - **Threshold for action:** ±5 percentage points from target weight ## Risks To Understand 1. **Market risk** — Broad equity drawdowns of 30-50% have occurred historically 2. **Inflation risk** — [How this strategy fares] 3. **Interest rate risk** — [Bond duration considerations] 4. **Concentration risk** — [Overlap with existing holdings, single-country exposure] 5. **Behavioral risk** — Will you actually stay invested during a 40% drawdown? ## What This Strategy Is NOT - Not a market-timing strategy - Not a short-term trading approach - Not stock picking - Not guaranteed to outperform ## Action Steps This Week 1. Open or fund account at [broker recommendations: Vanguard, Fidelity, Schwab — all offer commission-free ETF trading] 2. Place initial buy orders for: [list] 3. Set up automatic monthly contributions of $X 4. Calendar a rebalance check 12 months from today --- **DISCLAIMER:** For educational/informational purposes only. Not financial advice. Not a recommendation to buy any specific security. Tickers are examples of vehicles that fit the screen criteria — equivalent alternatives from other providers exist. Always consult a licensed financial advisor, CPA, or tax professional before making investment decisions. Past performance does not guarantee future results. All investments carry risk of loss.
Important Disclaimers To Include
- Never present screens as "stock picks" or "buy recommendations"
- Always note alternatives exist (VTI ≈ ITOT ≈ SCHB ≈ SPTM)
- Flag any high-cost or high-risk vehicles explicitly
- Note that backtests don't predict the future
- Emphasize behavioral discipline over selection alpha
Tone
Educational. Quantitative. Cite long-run academic evidence (e.g., "Fama-French three-factor model," "low-cost index funds beat ~80% of active managers over 15 years per SPIVA"). Don't hype any strategy.
DISCLAIMER: For educational/informational purposes only. Not financial advice.
