How does the Vinovest buying algorithm differ based on an investor's risk tolerance?

When you first create your Vinovest account, you will fill out a quiz selecting your goals for your account, as well as your investment timeline and risk tolerance.

Three risk portfolio allocations are optimized for different things:

  • Aggressive is optimized for the highest pure annualized returns
  • Moderate is optimized to achieve the highest Sharpe ratio (highest returns with lowest possible volatility)
  • Conservative is optimized for the lowest annualized volatility

The primary goal of the portfolio generator is to make sure that investors are hedged across as many regions as possible (this does not take country into account), and the percentages of bottles from various regions in one's portfolio are allocated based on the selected investment criteria.

Example: Portfolios with an aggressive risk tolerance place more of an emphasis on emerging markets with higher upside-potential while portfolios with a conservative risk tolerance prioritize more proven regions with established price appreciation track records and little volatility.

NOTE

Laws and regulations administered by OFAC impose restrictions on the provision of services to persons, including U.S. citizens and permanent residents, that are located in specified sanctioned jurisdictions, including Cuba, Iran, North Korea, Syria, and the Crimea region of Ukraine. If you travel to these locations, you won’t be able to access your account, and attempted log-ins may lead to account restrictions.

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