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Why doesn't Venn support holdings-based analyses?
Why doesn't Venn support holdings-based analyses?
Anna German avatar
Written by Anna German
Updated over a week ago

Rev. Date March 2, 2023

Venn provides the ability to identify and aggregate holdings data such as asset class, geography, and sector among mutual funds, ETFs, and individual stocks within the Venn Library (please refer to the FAQ: Holdings article for more information). However, Venn currently does not support running analyses such as factor analysis or risk and return attributions on the holdings data.

The Venn platform uses a returns-based approach for portfolio analytics. Advantages to this approach include being able to analyze any investment with a return stream, including unique asset classes such as private assets. Returns-based analysis is also able to decompose performance across common risk factors, providing insight into portfolio or investment performance without transparency into the holdings data, which is often difficult to access, incomplete, or inconsistent from day-to-day, particularly for private assets or hedge funds.

Furthermore, historical holdings data is currently not supported in Venn. As such, returns-based analysis is able to use more history to paint a picture of the investment or portfolio's behavior over time, instead of analyzing a single snapshot of the subject as of one particular date in the past.

We believe combining returns-based insights with context from the holdings data can create a more robust narrative for interpreting an investment or portfolio’s performance. Please refer to our blog for more information.

This document highlights certain aspects of this feature. As an overview, it does not discuss all material facts or assumptions. Please see Important Disclosure and Disclaimer Information.

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