This baseline represents your long-term strategic allocation – the equity exposure you’re comfortable maintaining over many years and market cycles. It should reflect your risk tolerance, time horizon, and financial goals. The dynamic adjustments Elm makes around this baseline help you potentially capture better returns while managing risk, but your baseline setting anchors the overall risk level of your portfolio.
Elm Portfolio Settings
Need Help? Let's Talk
Risk
The Baseline Equity Risk Dial controls how much of your Elm portfolio goes into stocks versus bonds (Risk Assets vs Safe Assets) in the
Baseline
Key Point:
This is just your starting point. Elm’s dynamic system will adjust your exposures up and down based on changing market conditions - so your actual equity allocation will vary around your baseline setting.
Set Your Baseline Equity Risk
This can be changed anytime
Investors in each category may have any (not necessarily all) of these characteristics
Low
- CRRA: 3+ (very risk averse)
- High current spending needs relative to wealth
- Limited ability to adjust spending during market downturns
- Shorter time horizon or fixed expenses
- Low marginal utility of additional wealth
Medium
- CRRA: 2-2.5 (normal risk aversion)
- Retired or approaching retirement
- Some spending flexibility during volatile periods
- 2-4% spending rate from portfolio
- Balance growth and income needs
High
- CRRA: <2 (risk seeking)
- Low spending needs relative to wealth
- High spending flexibility - can reduce expenses if needed
- 10+ years from retirement or major spending needs
- High marginal utility of additional wealth
Low
Medium
High
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
See Elm's current portfolio using our Asset Allocation Tool
Global Equity Mix
The Global Mix Dial controls how your stock investments are split between U.S. and non-U.S. markets in the
Baseline
This setting helps Elm fit with the rest of your overall portfolio to achieve your desired level of diversification. You may choose to add bias one way or the other to complement your existing holdings or match your geographic preferences.
Key Point:
This is your baseline geographic split. Elm’s dynamic system will then adjust the actual weights based on changing market conditions across different regions.
Set Your Global Equity Mix
This can be changed anytime
+25% Non-US
- Already have US exposure elsewhere
- Baseline constructed with higher non-US allocation.
- Results in Baseline equity of 45% US / 55% Non-US
Neutral
- Neutral refers to Adjusted Global Market Cap Weights, currently 60% US / 40% Non-US
- The neutral setting (0%) provides the most globally diversified approach within Elm
+25% US
- Already have non-US exposure elsewhere
- Baseline constructed with higher U.S. allocation to complement U.S.-light allocation elsewhere
- Results in Baseline equity of 70% US / 30% Non-US
Non-US
US
+25%
+10%
Neutral
+10%
+25%
If you're interested in more than 25% in either direction, please leave a note below.
See Elm's current portfolio using our Asset Allocation Tool
Dynamic Scaling
The Dynamic Scaling Dial controls how much your Elm portfolio responds to changes in market conditions.
This setting determines how much you want Elm to adapt over time. Higher settings allow for more dramatic portfolio changes during market cycles, while lower settings keep you closer to your baseline regardless of conditions. Consider your comfort level with portfolio changes and whether you prefer stability or maximum responsiveness. Note that with 100% Dynamic Scaling, your equity exposure could range anywhere from 0% to 100% depending on market conditions.
Key Point:
This controls how much your actual allocations will vary from your baseline settings as market conditions change.
Benefits of Dynamic Scaling
Set Your Dynamic Scaling
This can be changed anytime
Fully Static
At 0%, the portfolio target weights are fully static and will be regularly rebalanced to baseline weights
50%
At 50%, the portfolio will make moderate adjustments based on market signals
Fully Dynamic
At 100%, the portfolio will respond proportionally to changes in Risk Premium and Risk Level signals
Fully Static
Fully Dynamic
0%
25%
50%
75%
100%
See Elm's current portfolio using our Asset Allocation Tool