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Data Disclaimer

Last updated: August 1, 2022

We leverage data from a variety of sources throughout our product. Below are key data sources we reference.

Fund data

Fund data including name, fees, fee level, and underlying category provided by Morningstar © 2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

High fee holdings – mutual funds

Fee levels for mutual funds are identified by Morningstar, a leading investment research firm. Morningstar determines a fee level for funds by grouping similar investment vehicles and then comparing expense ratios for that group. The group of funds is separated into quintiles by expense ratio and assigned a fee level: Low, Below Average, Average, Above Average, and High. Funds with a Fee Level equal to Above Average or High are recognized as high fee holdings by Capitalize.

High fee holdings – ETFs

Capitalize uses a similar methodology to calculate fee levels for ETFs. Capitalize groups similar investment vehicles by Morningstar category and then compares expense ratios for that group. The group of ETFs is separated into quintiles by expense ratio and assigned a fee level: Low, Below Average, Average, Above Average, and High. ETFs with a Fee Level equal to Above Average or High are recognized as high fee holdings by Capitalize.

Target portfolios and asset allocations

Target portfolios assume a retirement age of 65. In applying particular asset allocations to their individual situations, participants or beneficiaries should consider their other assets, income, and investments (e.g. equity in a home, IRA investments, savings accounts, and interests in other qualified and non-qualified plans) in addition to their interests in the plan.

401(k) score

A user’s 401(k) score is calculated through a combination of misalignment between their current holdings to their chosen target portfolio as well as the proportion of their holdings that are high fee. In applying particular asset allocations to their individual situations, participants or beneficiaries should consider their other assets, income, and investments (e.g. equity in a home, IRA investments, savings accounts, and interests in other qualified and non-qualified plans) in addition to their interests in the plan. It is a generally accepted investing principle to avoid funds with high fees, however investors may want to consider other factors (such as performance and management style) when evaluating investment options.

IRA provider info

Product information is taken from publicly available IRA provider websites; reviews are based on Capitalize expert review of products.

Capitalize rating

Our team of experts evaluates all providers based on various criteria including fees, ease of use, customer support, investment options, and our level of technical and operational integration with providers, which determines the ease of rollover through our platform; evaluation is based on use by a typical user.

SIPC insurance

SIPC coverage protects investors against loss should a broker experience financial troubles. Brokerage firm failures are rare. SIPC coverage does not protect against investment losses (e.g. when a stock or other investment declines in value). SIPC coverage is limited to $500,000 in total value, including up to $250,000 for cash. For more information, visit the SIPC website.