Hi Everyone.  This is just a brief message to let you know about an upcoming addition to my Portfolio page… a Portfolio Treemap.

I plan to add the treemap starting with my September update.  I’ve seen such treemaps as part of other blogs and enjoy viewing them, so I decided to create one for my Portfolio.

Most frequently, I find one over at Young Dividend.  In fact, there’s one as part of YD’s August Portfolio update.  Check it out.

 

For me, the treemap offers another way to look at my Portfolio.  Here’s the main idea as it’s described on Wikipedia…

Treemaps display hierarchical, tree-structured data as a set of nested rectangles.  Each branch of the tree is given a rectangle, which is then tiled with smaller rectangles representing sub-branches.  A leaf node’s rectangle has an area proportional to a specified dimension of the data.  Often the leaf nodes are colored to show a separate dimension of the data.

When the color and size dimensions are correlated in some way with the tree structure, one can often easily see patterns that would be difficult to spot in other ways, such as whether a certain color is particularly relevant.  A second advantage of treemaps is that, by construction, they make efficient use of space.  As a result, they can legibly display thousands of items on the screen simultaneously.

 

The treemap wasn’t too complicated to create, as Excel has a tool for generating one.  I just needed to figure out how to point to the relevant data for inclusion.

In Excel, the treemap updates automatically as the input data changes, so providing this on a regular basis shouldn’t require much effort.  I like that!

When examining my Portfolio treemap, there are 3 specific pieces of information that are included.  First, there’s the sector my Portfolio stock is in.  Second, there’s the name of the particular stock.  Lastly, there’s the value weighting of the stock within that sector, as well as my Portfolio.

In the event you wish to try this yourself, here’s a shortened clip of the table of data I needed to provide for creating the treemap (just enough for you to get the idea).  The key to getting the data input correctly was sorting the table by sector, as opposed to company or value.

 

 

And here’s my Portfolio Treemap as of 8/21/2020…

 

As you can see, each sector is represented by a color, and each stock within that sector has its own rectangle.  The size of that rectangle represents the value weighting of the stock within that sector, and within the Portfolio as a whole.

You’ll only see 9 of the 11 GICS sectors represented in my treemap, as I don’t currently own any stocks from the Energy or Utilities sectors.

From the treemap, it’s apparent that Technology is the sector with the largest weighting in my Portfolio, while Real Estate is the smallest.  It can also be seen that Qualcomm (QCOM) is my largest individual holding, while Sysco (SYY) is the smallest.

 

That’s all I wanted to share for now.  I hope you find this to be a useful addition to my Portfolio page starting in early September.  Let me know what you think of it!