How to build your LendingClub portfolio

There are many different ways you can approach investing in LendingClub Notes, with options ranging from automated investing to more control over which loan criteria you want to invest in.

Defining and implementing your LendingClub investment strategy

After you’ve learned what a Note is, it’s time to build your portfolio of LendingClub Notes.

Your risk tolerance and time horizon—which correspond to grades and terms of the Notes you purchase—are part of your investment strategy. How you implement that strategy is another important factor. Check out the various ways you can apply your LendingClub Note investment strategy below.

 

Choosing the platform mix means a representative sample of Notes available on the platform will be allocated to your account. Custom mix means you select the Note grades and terms you want to invest in—you also have the option to apply additional filters.

At any time when using automated investing, you can still manually browse and invest in Notes. Some investors manually purchase Notes, on occasion, to supplement automated investing.

When manually investing, you can choose to filter just by the Note grade, the Note term, or both. You also have the option to apply additional filters without choosing the Note grade or term.

Some investors use our API service to invest in LendingClub Notes, learn more here.

Setting up additional filters

If you’re planning to apply filters to your Note investment strategy, you will need to set up your filters in the “manual investing” section of your account. Filter options include things like loan purpose, credit score, debt-to-income ratio, and home ownership status. Keep in mind that the way you choose to manage your investment strategy may impact how quickly your cash gets invested. The more filters you select, the longer it may take to find Notes that match your criteria.

Setting up filters

If you’re investing manually:

1. Log into your account and go to the manual investing section
2. Select your filter(s)
3. Name your filter(s) and hit save

If you’re using automated investing:

1. Perform steps 1-3 above, then go to the “adjust your strategy” page in the investment strategy section and select custom mix. Your filter option(s) will appear under “apply a filter.”
2. Apply the filter and hit save

Know that the option to apply a filter will not appear unless you’ve built a filter on the manual page and saved it.

A helpful hint

Because you have autonomy over your investment criteria, keep in mind it is possible to create conflicting filters. If you set conflicting filters and have automated investing on or invest via API, it may be difficult, if not impossible, for the platform to find any Notes that match your criteria. One example of a conflicting filter would be to set a custom mix of 50% A-grade Notes and 50% B-grade Notes, yet set a filter to automatically invest in only D-grade Notes. In this example, it’d be impossible to find any Notes matching your criteria.

Need additional assistance with defining your LendingClub strategy? Contact us at investing@lendingclub.com or 888-596-3159.