Portfolio Management

In this video, Ryan O’Connell, CFA, FRM, explains tracking error—a key concept in portfolio management that highlights the performance gap between a fund and its benchmark. We break down how fund fees, the number of securities, and cash holdings all contribute to tracking error in ETFs, index funds, and mutual funds. You’ll learn what tracking error means in real-world terms and why it matters for passive investors. Whether you’re studying for the CFA or managing your own portfolio, this is essential knowledge for evaluating fund performance.

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Chapters
0:00 – What Is Tracking Error? Definition & Real-World Meaning
3:15 – How Fund Fees Contribute to Tracking Error
3:54 – Tracking Error & Number of Securities in a Fund
4:31 – Impact of Cash Holdings on Tracking Error and Fund Performance

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Learn how portfolio rebalancing helps manage risk and keep your investments aligned with your financial goals. In this video, Ryan O’Connell, CFA, FRM, explains key rebalancing strategies like calendar-based and percent-range methods. You’ll also discover how factors like volatility, correlation, transaction costs, and risk tolerance affect rebalancing decisions. Perfect for investors who want to understand when and how to rebalance for long-term success.

🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa

Chapters:
0:00 – What Is Portfolio Rebalancing?
0:20 – Why Rebalancing Is Countercyclical
1:12 – Calendar-Based Rebalancing Strategy
1:42 – Percent-Range Rebalancing Strategy
2:48 – Narrow vs. Wide Rebalancing Thresholds
3:47 – How Transaction Costs Impact Rebalancing
4:30 – Risk Tolerance and Its Role in Rebalancing
4:57 – Asset Correlation and Rebalancing Decisions
5:34 – How Volatility Affects Rebalancing Frequency

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Understanding portfolio standard deviation is essential for measuring investment risk, and in this video, we break down the portfolio standard deviation calculation step by step using Excel. We start by assigning weights to securities, calculating daily returns from stock prices, and creating a covariance matrix in Excel, before determining the overall portfolio risk. This tutorial simplifies complex financial concepts, making it easy for investors and finance professionals to apply in real-world scenarios. Watch now to master portfolio standard deviation in Excel and improve your portfolio management skills!

📈 *See Why I Recommend This Broker:* https://ryano.finance/ibkr-overview

💾 *Download Free Excel File:* https://ryanoconnellfinance.com/product/portfolio-standard-deviation-calculation/

Chapters
0:00 – Assign Weights For Securities
0:18 – Calculate Daily Returns From Stock Prices
1:34 – Create Covariance Matrix In Excel
3:40 – Portfolio Standard Deviation Calculation

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Learn how to lend your stocks and earn passive income through stock lending programs like the Stock Yield Enhancement Program (Interactive Brokers) and Fully Paid Lending Program (Fidelity). While this video covers Interactive Brokers and Fidelity, the concept applies to other platforms like Robinhood, Webull, and other stock lending income programs. We’ll break down how stock lending works, the pros and cons of stock lending, and whether stock lending is a good idea for you. We’ll also cover stock lending payment structures, how to reduce taxes, and how to lend stocks to short sellers while maximizing returns.

📊 *Stock Yield Enhancement Program Here→* https://ryano.finance/yield-enhancement

📊 *IRS Details Here→* https://ryano.finance/ibkr-ira

Chapters:
0:00 – Intro to Lending Stocks to Short Sellers
0:25 – What Is Stock Lending
0:50 – Stock Yield Enhancement Program – Interactive Brokers
2:56 – Fully Paid Lending Program – Fidelity
3:36 – Pros & Cons of Stock Lending
4:57 – How To Reduce Taxes From Stock Lending

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.

None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.

Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.

The market-based rate is determined by taking into account the rates on shares IBKR has loaned to or borrowed from others, and third-party market data.
Not all clients are eligible to participate in the Stock Yield Enhancement Program. Currently, clients of IB India and IB Japan are NOT eligible. Clients of IB LLC, IB Canada, IB Hong Kong, IB UK, IB Ireland, IB Central Europe and IB Singapore are eligible, as are Japanese and Indian clients who trade with IB LLC. Clients of IB Australia may be eligible for SYEP Derivatives.

Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations.

The information in this video does not constitute tax advice and cannot be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local or other tax statutes or regulations, or to resolve any tax issue.

Build a LIVE Crypto Portfolio Tracker in Excel in Just 15 Minutes! In this step-by-step tutorial, you’ll learn how to track live cryptocurrency prices, calculate portfolio value, cost basis, and gains & losses—all within Excel. We’ll also retrieve 52-week highs & lows, organize holdings by brokerage, and create powerful visualizations like a crypto allocation pie chart and a gains & losses chart. Whether you’re an investor looking to manage your crypto holdings or an Excel enthusiast wanting to automate price updates, this guide will help you refresh live data effortlessly. Watch now and build your own real-time Excel crypto portfolio tracker!

📊 *See Crypto Commissions Here→* https://ryano.finance/ibkr-crypto

💾 *Download Free Excel File Here →* https://ryanoconnellfinance.com/product/crypto-portfolio-dashboard-in-excel/

Chapters:
0:00 – Crypto Portfolio Tracker Demo
0:47 – Insert & Format Column Headers
1:40 – How To Get Live Crypto Prices in Excel
4:09 – Calculate Crypto Portfolio Value
4:40 – Find Cost Basis of Crypto Holdings
5:32 – Calculate Gains & Losses by Cryptocurrency
7:30 – Format Gains & Losses for Better Visibility
8:28 – Retrieve 52-Week Highs & Lows for Cryptos
9:27 – Track Where Your Crypto Holdings Are Stored
9:55 – Calculate Total Portfolio Value
12:01 – Add a New Crypto Position to Your Portfolio
12:58 – Create a Crypto Allocation Pie Chart
13:44 – Build a Gains & Losses Chart in Excel
14:32 – How to Refresh Live Crypto Prices in Excel

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.

None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.

Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.

The projections or other information regarding the likelihood of various investment outcomes generated by the Tools mentioned in this video are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. It is important to understand that these projections are based on certain assumptions and models, and actual outcomes may differ significantly. Please note that results may vary over time.

IBKR Digital Assets (Paxos Zero Hash):
Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high-risk tolerance and the financial ability to sustain losses. For more information about the risks surrounding the trading of Digital Assets please see the “”Disclosure of Risks of Trading Digital Assets”. All trading and custody of digital assets is provided by Paxos Trust Company (“”Paxos””) or Zero Hash LLC in an account held in your name. Digital assets held with Paxos/Zero Hash are not protected by SIPC. Eligibility restrictions apply. For more information, please see ibkr.com/crypto.
INTERACTIVE BROKERS LLC IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.
Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations.

Optimize your investment strategy with AI-powered portfolio optimization using a smart spreadsheet tool! In this video, you’ll learn how to set up an AI spreadsheet, retrieve historical stock prices, and calculate key portfolio metrics like returns, standard deviations, and the Sharpe ratio. Follow along as we install the necessary libraries, select an AI model, and perform portfolio optimization to maximize risk-adjusted returns. Whether you’re a beginner or an experienced investor, this step-by-step guide will help you automate data-driven investment decisions. Sign up for free, download the prompts, and start optimizing your portfolio today!

🤖 *Sign Up For Free AI-Spreadsheet Software:* https://www.quadratic.ai/ryan
Use Code RYANFINANCE for $10 Off Your Subscription

📝 *Download The AI Prompts Used In This Video:* https://drive.google.com/uc?export=download&id=19TrfBGYL-OHlUOksdWSJbv1UfeKXTqHG

💾 *Copy Free File Created In This Video:* https://www.quadratichq.com/templates/asset-allocation-calculator

📊 *Get a Free FRED API Key:* https://fred.stlouisfed.org/docs/api/api_key.html

Chapters
0:00 – Intro to Portfolio Optimization With AI-Powered Spreadsheet
0:21 – Sign Up For Free AI Spreadsheet Software Account
0:39 – Create a New File
0:51 – Download Prompts Used Throughout Video
1:13 – Select AI-Model
2:17 – Install Necessary Libraries
3:06 – Retrieve Historical Stock Prices
5:29 – Calculate Daily Stock Returns
9:10 – Annualize Returns And Standard Deviations
11:33 – Equally Weight the Portfolio
12:37 – Calculate Portfolio Standard Deviation
16:23 – Calculate Portfolio Return
18:25 – Retrieve the Risk Free Rate
21:15 – Measure Risk-Adjusted Return: Sharpe Ratio
22:56 – Perform a Portfolio Optimization

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Learn how to perform a Maximum Drawdown Calculation in Excel and understand its significance in portfolio risk analysis. In this video, we cover the Maximum Drawdown Meaning, step through the Maximum Drawdown Explained section, and demonstrate how to compute it using Maximum Drawdown Excel techniques. You’ll also see a Maximum Drawdown example with real-world data to help you apply this key risk metric to your own investments. Whether you’re a trader, investor, or finance professional, mastering Maximum Drawdown is essential for evaluating downside risk and protecting your portfolio. Maximum Drawdown is also known as Max Drawdown and is a downside risk measurement.

📈 *The Broker That Calculates Max Drawdown For You:* https://ryano.finance/ibkr-overview

💾 *Download Free Excel File Here:* https://ryanoconnellfinance.com/product/max-drawdown-calculation/

Chapters:
0:00 – Maximum Drawdown Definition & Formula
0:39 – Maximum Drawdown Explained
1:47 – Maximum Drawdown Calculation in Excel
4:00 – Real World Example of Maximum Drawdown

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.

None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.

Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.

The projections or other information regarding the likelihood of various investment outcomes generated by the Tools mentioned in this video are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. It is important to understand that these projections are based on certain assumptions and models, and actual outcomes may differ significantly. Please note that results may vary over time.

Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations.

Is margin trading & leverage a smart strategy, or is it just added risk? In this video, Ryan O’Connell, CFA, FRM, breaks down the real impact of margin trading on portfolio returns using a data-driven Excel analysis and Monte Carlo simulation. You’ll learn how margin works, leverage ratios, and margin interest rates affect investment growth—and whether the potential higher returns outweigh the risks.

We start by explaining the fundamentals of leverage and margin trading, followed by a step-by-step portfolio growth model comparing leveraged vs. non-leveraged strategies. I used Interactive Brokers’ margin rates for this analysis, but you can apply the same approach using Fidelity, Robinhood, or Binance margin rates as well.

📊 *Margin Rate Calculator →* https://ryano.finance/ibkr-margin

💾 *Download Free Excel File Here:* https://ryanoconnellfinance.com/product/margin-trading-return-simulator/

Chapters:
0:00 – What Is Leverage?
0:50 – Setting Expectations: Return & Risk
2:05 – Margin Trading Explained: How It Works & Costs
4:18 – Understanding Leverage Ratios & Their Impact
4:57 – Predicting Portfolio Growth With Margin Trading
9:22 – Comparing Portfolio Growth: With & Without Margin
10:15 – Monte Carlo Simulation: Testing Margin Trading Performance
11:49 – Is Using Margin Worth It?

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.

None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.

Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.

The projections or other information regarding the likelihood of various investment outcomes generated by the Tools mentioned in this video are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. It is important to understand that these projections are based on certain assumptions and models, and actual outcomes may differ significantly. Please note that results may vary over time.

Any trading symbols, entities or investment products displayed or named in this podcast are for illustrative purposes only and are not intended to portray recommendations.

Margin Trading:
Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see ibkr.com/interest

Any discussion or mention of an ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Should you buy leveraged ETFs for the long term? In this video, Ryan O’Connell, CFA, FRM, explains leverage decay and how it impacts the performance of leveraged ETFs over time. Using Excel, you’ll learn to calculate expected returns, randomize daily returns, and analyze leveraged portfolio outcomes through examples and Monte Carlo simulations. Discover whether leveraged ETFs are a viable long-term investment strategy or better suited for short-term trading.

📈 *This Broker Has The Best Margin Rates For Leverage:* https://ryano.finance/ibkr-overview

💾 *Download Free Excel File Here:* https://ryanoconnellfinance.com/product/leveraged-etf-leverage-decay-simulator/

Chapters:
0:00 – Definition of Leverage Decay
0:36 – Expected Return & Standard Deviation in Excel
2:07 – Randomizing Daily Returns on Index
4:34 – Calculating Leveraged Returns
5:12 – Leveraged Portfolio Outcome Examples
5:54 – Monte Carlo Simulation of Leveraged Portfolios
9:24 – Volatility Decay of Leveraged ETFs Explained

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Explore the world of Long/Short investing strategies with Ryan O’Connell, CFA, FRM, as he breaks down Long/Short Portfolios, including Long Extension and Market Neutral strategies. Learn the benefits and drawbacks of these advanced portfolio construction methods and how they can optimize your returns while managing risk. This video is perfect for finance professionals, CFA and FRM candidates, and anyone looking to deepen their understanding of long/short strategies. Watch now to master the principles of Long Extension and Market Neutral portfolios!

🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa

Chapters:
0:00 – Long/Short Portfolios Explained
1:50 – Long Extension Portfolios Explained
3:53 – Market Neutral Portfolios Explained
4:52 – Benefits of Long/Short Strategies
6:38 – Drawbacks of Long/Short Strategies

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.