There are three kinds of taxonomies that Capitally provides for most of the market-traded assets. You have the freedom to edit, expand, assign these to your custom assets, or even change the default assignments to better suit your portfolio needs.
The category taxonomy is a nested set of investment categories such as
Bonds/Government/Short. Each asset can be associated with only one category.
Stocks and Crypto are assigned to a proper
*-cap category, unless we don't have market cap information.
Categories are nested with increasing specificity. Meaning, that
Bonds category may contain any type of bond (or a mix of them),
Bonds/Government narrows down to government bonds of any maturity, and
Bonds/Government/Short is the most specific. We don't always have enough information to assign the most specific categories.
Assets can be assigned to either
Bonds/Government, depending on category specificity. If you choose the latter, the asset will not be included in the former.
If you want to summarise all of your bonds, look at
Bonds/***, as it will include
Bonds and any nested categories inside it.
The regions taxonomy is a nested set of world regions, like
Developed/North America/United States. Each asset can be associated with multiple regions and weighted accordingly. The classification follows the MSCI model.
Stocks are assigned to their country of origin.
ETFs and Funds are assigned to multiple broader regions, like
Developed/Europe (with the exception of US, Canada, UK and Japan).
As an asset can have multiple regions (or sectors), it's important to remember that it's impossible to properly attribute returns to just one region.
If you have an asset of 50% US + 50% Europe, that has $1k of returns, we will attribute $500 for US and $500 for Europe. In reality, the attribution may be widely different. We'll show you a warning if results you're looking at are partial like that.
To address the attribution issue, assets are also assigned to predefined Region Categories, such as
All World or
APAC, with each asset belonging to only one class. This classification provides non-partial results that can be benchmarked.
Assets are assigned to a class if their region weight matches the class within a ±10% precision.
Predefined classes use MSCI World as a reference for allocation.
If no class matches, the region or combination of regions covering at least 90% of the weight is used.
All World: ETFs or Funds tracking the MSCI World allocation
Developed World: ETFs or Funds tracking MSCI World allocation, excluding emerging markets
Developed: ETFs or Funds with at least 90% in developed markets (but not matching MSCI's Developed World)
Developed/North America + Developed/Europe: ETFs or Funds that combine North America and Developed Europe
Developed/North America/United States: Predominantly US-based Stocks, ETFs, or Funds
The sector taxonomy is a nested set of sectors and industries, like
Communication Services/Entertainment/Movies & Entertainment. Each asset can be associated with multiple sectors and weighted accordingly. We utilize the industry-standard GICS classification with minor adjustments to better fit the assets tracked in Capitally.
Stocks and cryptocurrencies are assigned to a specific sector and industry.
ETFs and Funds are assigned to broader sectors, such as
Most assets should have the correct taxonomies assigned, but if the data is missing, inaccurate, or not as you'd expect, you're free to make changes to any asset!
To ensure your taxonomies remain current, you can sync them for all market-traded assets. Simply open the Portfolio, navigate to Positions or Assets, and select "Update Market Taxonomies" from the context menu.
To edit a taxonomy, open it in Portfolio and click the Edit button. You can rename it or reorganize the structure within the tree.
If you rename a predefined taxonomy, like
Bonds, any new assets you add will adopt your renamed version, allowing you to customize your organization method.