Asset Classification

Enrich your investment advice and reporting with Envestnet | Yodlee Asset Classification Service.
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Insightful Asset Classification With Yodlee

Correctly classifying investment assets is critical for managing investors’ risk exposure, and it can also improve the quality of your investment advice. Utilizing data across 20 exchanges in 6 countries, the Asset Classification Service enriches security categorization, enabling a more accurate and holistic depiction of asset allocation.

This product is available via
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Asset Classification

Key Benefits

Streamline investment reporting by classifying stocks, bonds, mutual funds, and other assets in investor portfolios by risk-and-reward, asset class, sector, style, and geography.

Portfolio Management

Assists advisors in managing investors' risk exposure and diversification

Streamlined Reporting

Displays investments by asset class, sector, country, and risk & reward for easier reviewing, scanning, and data sorting

Custom Recommendations

Makes it easier to offer the right recommendations and products to the right investors

Market Leading Accuracy

Provides a higher population rate and accuracy for asset classifications

Broad Coverage

Holdings data procured from multiple industry sources enables deep insights and operational efficiency

Advisor-Investor Collaboration

Facilitates advisor-investor collaboration on portfolio diversification and rebalancing strategies

Insights and Opportunities for Wealth Managers

Read through our asset classification data sheets, whitepapers, and more.

The Next Step After Aggregation and Normalization

Empower Advisors and Investors

After using Envestnet | Yodlee to aggregate and normalize financial data from 21,000 data sources, data is ready for asset classification.

As a supplement, the Asset Classification Service applies asset class, sector, geography, and risk-and-reward classification types to stocks, bonds, mutual funds, and other assets in investors’ portfolios. This makes it easier for advisors to review, scan, and sort data for increased insights and streamlined investment reporting.

Clearer Risks. Greater Rewards.

Risk and reward ratios enable investors to compare their holdings to their risk preferences. Advisors can also use risk and reward data to provide portfolio diversification and re-balancing strategies in their clients’ best interest. Additional classifications enable advisors to better understand their clients’ unique situations to enhance advisor-investor consultations and increase client loyalty.

What Is The Purpose Of Asset Classification?

Asset classification, the system of assigning investments into groups or categories that have similar characteristics, shows how assets are distributed in a portfolio. Financial advisors rely on asset classification to identify when investors are over or under diversified based on their goals, age, risk tolerance, and personal preferences. Automated asset classifications and style predictions can empower intelligent portfolio rebalancing decisions for investors and help investors guard against market volatility. Learn more about asset classification in our on-demand webinar and how to make the move to higher quality investment account data.

Types of Asset Classification

Historically, the main asset classes are equities (stocks), bonds (fixed-income securities), and cash or cash equivalents (like money market funds, Treasury bills, corporate commercial paper, marketable securities, and short-term government bonds). Today, most financial advisors have broadened their scope to focus on additional asset classes such as real estate, cryptocurrencies, and valuable inventory (artwork, stamps and other tradable collectibles). There are also different types of sub-asset classes based on geography, industry sectors, market capitalization (large-cap, mid-cap, small-cap), and other criteria.

Asset classes vary in terms of the level of risk, performance in different market conditions, and their potential to deliver returns. Correctly classifying investment assets is critical for managing investors’ risk exposure and providing the most strategic investment advice.