Best CFA Level 2 Study Order: Strategic Topic Sequence 2026

The optimal CFA Level 2 study order prioritizes high-weight topics first: Financial Statement Analysis (10-15%), Fixed Income (10-15%), then Quantitative Methods and Equity.

This differs from curriculum order because Level 2’s even topic distribution (all 10 topics can be weighted at 10%) means you must cover heavyweight content early while motivation is high. Save Ethics for last to maximize retention.

The best CFA Level 2 study order starts with high-weight topics first: Financial Statement Analysis (10-15%), Fixed Income (10-15%), Quantitative Methods (5-10%), then Equity (10-15%), followed by Portfolio Management, remaining asset classes, Corporate Issuers, Economics, and Ethics last.

This strategy differs from both the curriculum order and the Level 1 approach for a critical reason: CFA Level 2’s topic weights are more evenly distributed vs CFA Level 1 (all 10 topics can theoretically be tested at 10% each), making it impossible to skip content. Starting with heavyweight topics while you’re fresh reduces the risk of running out of time before covering high-value material.

Level 2 is widely considered the toughest CFA level due to the significant step up in depth, the more even distribution of topic weights, and the vignette format requiring deeper application of knowledge.

The 2026 curriculum contains 45 Learning Modules across 10 topics. While following curriculum order works, this optimized sequence maximizes your chances of success based on proven study psychology and exam weight distribution.

Contents

Should I study CFA Level 2 topics in curriculum order or a custom sequence?
Why does CFA Level 2 require a different study strategy than Level 1?
What is the recommended study order for CFA Level 2 topics?
How to implement this CFA Level 2 study order in your 6-month plan
Frequently asked questions about CFA Level 2 study order

Should I study CFA Level 2 topics in curriculum order or a custom sequence?

CFA Institute’s curriculum order for 2026 Level 2 is: Tools (Quant, Economics) → Asset Classes (FSA, Corporate Issuers, Equity, Fixed Income, Derivatives, Alternatives) → Portfolio Management → Ethics. This provides logical subject flow and works for some candidates.

However, a custom study order offers four strategic advantages for Level 2 specifically:

Tackles high-weight content while motivation is peak: FSA and Fixed Income (10-15% each) are among the most challenging topics. Studying them in months 1-3 when you’re most motivated ensures mastery before fatigue sets in. Leaving them for month 5 risks shallow coverage.
Prevents the “ran out of time” disaster: Because all 10 Level 2 topics can be weighted equally at 10%, running out of time before covering a major topic is catastrophic. Prioritizing high-weight topics first ensures your most valuable study hours go to the highest-value content.
Leverages concept dependencies: Certain topics build on others. For example, binomial trees appear in both Fixed Income and Derivatives. Mastering the concept in Fixed Income first makes Derivatives significantly easier. Similarly, Multiple Regression in Quant supports Portfolio Management.
Balances difficulty to maintain momentum: Alternating challenging topics (FSA, Fixed Income) with more accessible ones (Economics, Corporate Issuers) prevents burnout and keeps you moving forward.

The key difference: curriculum order optimizes for subject logic, while this custom order optimizes for study psychology and exam weight distribution.

Why does CFA Level 2 require a different study strategy than Level 1?

Level 2 differs from Level 1 in three critical ways that affect study order:

Even topic distribution: Unlike Level 1 where Ethics (15-20%) and FSA (11-14%) clearly dominate, Level 2’s weights are nearly flat at 5-15% per topic. All 10 topics can theoretically be tested at 10% each. This means you cannot afford to skip or rush any major topic.
Vignette format requires depth: Each vignette (case study) contains 4-6 questions testing integrated knowledge within one topic. You need deep mastery of each topic rather than broad surface-level coverage. Shallow preparation is immediately exposed.
Greater volume and complexity: Level 2 averages 328-350 study hours versus Level 1’s 300 hours, with significantly more technical content per reading. Starting with difficult topics while motivation is high prevents burnout before reaching critical material.

The recommended order addresses these challenges by frontloading high-weight, difficult content (FSA, Fixed Income) when you’re most motivated, then strategically sequencing remaining topics to maintain momentum and leverage concept connections.

What is the recommended study order for CFA Level 2 topics?

For CFA Level 2, the flow of topics is arranged as:

Tools → Asset Classes → Portfolio Management → Ethics

The good news is, CFA Institute has confirmed that the design of the readings in each study topic do not assume that the candidate approaches the study sessions in any particular order.

CFA Level 2 can often be viewed as the toughest amongst the 3 levels, simply because:

there is a significant step up in terms of materials covered vs Level 1;
the topic weights are the most evenly distributed amongst the 10 topics compared to Level 1 or 3 (in theory all 10 topics can be evenly weighted at 10%!);
the most difficult topics are different for each candidate.

With these in mind, we have developed our own study plan to ensure candidates have sufficient time to master the difficult and high-weighted topics, and benefit from the linkages between certain topics.

Here’s our thought process and strategy for the optimal CFA Level 2 study order:

Leave Ethics last: The classic move, but make sure you leave sufficient time for it.
Prioritize higher weighted topic first: Given the sheer amount of materials to study and that each candidate’s “difficult topics” may vary, we recommend starting with a few heavyweight topics first whiles you’re still fresh, to reduce the risk of not finishing your studies on time.
Objectively maximizing your odds of success: Prioritizing the higher topic weights at the start will ensure that you maximize your topic coverage, even though if this means you may find it tough going at the first few months. Even if you fail to finish studying on time, you would have covered more topics when you start doing practice questions.

In short, this led me to the following suggested CFA Level 2 study order for 2026’s curriculum (LM references as per our free CFA study planner):

CFA Level 2 Topic Study Order	2026’s Curriculum (45 Learning Modules in total)	Estimated study hours	Study timeline (6 months)	Strategic rationale
1) Financial Statement Analysis (FSA)	Topic 3: LM 10-15	40-50 hours	Weeks 1-4	High weight (10-15%), highly technical (pensions, intercorporate), builds foundation for Equity
2) Fixed Income	Topic 6: LM 26-30	40-50 hours	Weeks 5-8	High weight (10-15%), introduces binomial trees needed for Derivatives
3) Quantitative Methods	Topic 1: LM 1-7	20-25 hours	Weeks 9-10	Technical regression concepts support Portfolio Management
4) Equity	Topic 5: LM 20-25	45-55 hours	Weeks 11-15	Largest topic by content (10-15%), applies FSA knowledge
5) Portfolio Management	Topic 9: LM 37-42	30-40 hours	Weeks 16-18	Medium-high weight (5-15%), integrates Quant concepts
6) Derivatives	Topic 7: LM 31-32	20-25 hours	Weeks 19-20	Lower weight (5-10%), builds on binomial trees from Fixed Income
7) Alternative Investments	Topic 8: LM 33-36	20-25 hours	Week 21	Medium weight (5-10%), straightforward content
8) Corporate Issuers	Topic 4: LM 16-19	20-25 hours	Week 22	Medium weight (5-10%), overlaps with Level 1, moves quickly
9) Economics	Topic 2: LM 8-9	15-20 hours	Week 23	Lower weight (5-10%), FX focus, overlaps with Level 1
10) Ethics	Topic 10: LM 43-45	35-45 hours	Weeks 20-26 (light review weeks 20-23, intensive weeks 24-26)	High weight (10-15%), best retention when studied last
Mock Exams & Review	All topics	25-35 hours	Weeks 24-26	4-6 full mocks to simulate exam conditions and identify weaknesses

1st: Financial Statement Analysis (10-15% exam weight)

This is a highly-weighted topic area and for those candidates that are not trained in accounting, it is usually one of the most difficult.

For these reasons we believe it is imperative this is the first topic studied. The focus at Level 2 is much narrower than at Level 1.

The exam primarily focuses on a small range of topics but candidates are required to know these topics in detail.

One of the hardest of these topics is the accounting treatment for pension liabilities. Given the depth required and the technical difficulty, you need to allow plenty of time in order to master this area.

2nd: Fixed Income (10-15% exam weight)

There is considerable overlap between Levels 1 and 2 here, with the main focus of the readings being the valuation of bonds.

It starts with simple bonds and gradually builds up to valuing bonds with embedded options. This latter group requires you to master the binomial tree approach to valuation.

The binomial tree approach is also included within the Derivative Investments study session and so it is important you master this topic within Fixed Income before you tackle Derivatives.

3rd: Quantitative Methods (5-10% exam weight)

Although not a particularly highly weighted exam topic (5-10%) this area does contain technically difficult aspects of regression and time series analysis.

Elements from this study session are need to fully appreciate certain aspects of the Equity readings and also the Portfolio Management readings.

4th: Equity Valuation (10-15% exam weight)

This is the largest topic area, both in terms of exam weighting (10-15%) and content.

A key element is the valuation of stocks using both discounted dividends and also free cash flow.

The latter requires you to be confident using the “Indirect method” for deriving cash flow from operations. This builds on your Level 1 knowledge and to a certain extent the Level 2 FSA knowledge.

5th: Portfolio Management (5-15% exam weight)

As noted above, it is important to have studied the Multiple Regression reading within Quantitative Methods to appreciate elements of the Portfolio Concepts reading. For this reason we suggest studying this topic shortly after the completion of Quantitative Methods.

Part of this topic builds on from Level 1, such as the Markowitz Minimum Variance model (often known as the efficient frontier model) and the calculation of portfolio risk using two and also three assets.

This familiarity helps you get into this topic, making the jump from CFA Level 1 to Level 2 more manageable. This area represents 5-15% of the exam.

6th: Derivatives (5-10% exam weight)

This area breaks down into three main areas: Forwards and Futures; Options; and finally Swaps.

Throughout, the focus is on understanding the pricing and valuing of these derivatives. The option readings, as noted above, include the Binomial Tree model which is also covered within Fixed Income.

In our opinion, the Fixed Income readings cover this aspect in a clearer and more thorough manner which is why we recommend studying Fixed Income before Derivatives.

This topic area accounts for 5-10% of the exam and is likely to be one of the most technically challenging areas of the Level 2 curriculum – you’ve been warned!

Focus on identifying the “low-hanging fruit” and you should stand a good chance of scoring reasonably well here.

7th: Alternative Investments (5-10% exam weight)

This topic is often overlooked and yet it has the same exam weighting as most of the other topics (5-10%) and the content is not that technical.

The main focus here is understanding the valuation of real estate and analyzing the performance of private equity funds.

8th: Corporate Issuers (5-10% exam weight)

Builds on from Level 1 in the areas of Capital Budgeting (NPV and IRR) and also a new topic of Corporate Restructuring.

There are other readings that were not addressed in the Level 1 curriculum but these tend to be relatively accessible for most candidates.

This means you ought to be able to cover this 5-10% topic relatively quickly.

9th: Economics (5-10% exam weight)

The main focus here is on foreign exchange rates and the various economic theories that purport to explain movements in foreign exchange rates.

There is overlap here with Level 1 which will help you cover this study session.

This topic accounts for 5-10% of the exam.

10th: Ethical and Professional Standards (10-15% exam weight)

There are two very different approaches used by candidates to tackle Ethics (10-15%).

Some leave this topic to last (but not too late!) and then “blitz” the readings near to the exam date and rely on their short term memory.
Others prefer to spread this topic over their whole study period and spend 20-30 minutes a day on this topic. This “little and often” approach will help you understand the Standards of Practice rather than merely memorize them. We recommend this latter approach.

Most of Ethics at Level 2 is exactly the same as Level 1 except there is no coverage of the GIPS and there is an additional reading covering Research Objectivity Standards.

Remember, for candidates that are deemed to be marginal, CFA Institute will refer to the candidate score on Ethics, so it is imperative this topic is given the priority it deserves.

How to implement this CFA Level 2 study order in your 6-month plan

Months 1-2: Master high-weight technical topics (Weeks 1-8)
Start with Financial Statement Analysis (40-50 hours over 3-4 weeks), then immediately move to Fixed Income (40-50 hours over 3-4 weeks). These are your highest-weight, most technical topics. Covering them first while motivation is high ensures mastery before fatigue sets in. At 20-25 hours per week, this fills your first 8 weeks.

Month 3: Build analytical toolkit (Weeks 9-15)
Complete Quantitative Methods (20-25 hours over 2 weeks), then start Equity Valuation (45-55 hours over 4-5 weeks). Quant provides the regression and time series tools you’ll apply in Portfolio Management later. Equity is the largest topic by content and builds on your FSA foundation.

Month 4: Integrate knowledge (Weeks 16-20)
Finish Equity Valuation, then complete Portfolio Management (30-40 hours over 3 weeks). Portfolio Management synthesizes concepts from Quant and all asset classes. Then tackle Derivatives (20-25 hours over 2 weeks), leveraging the binomial tree concepts you mastered in Fixed Income.

Month 5: Clear remaining topics (Weeks 21-23)
Complete Alternative Investments (20-25 hours), Corporate Issuers (20-25 hours), and Economics (15-20 hours). These are relatively lighter topics that move quickly. Start light Ethics review (15 minutes daily) while completing these topics.

Month 6: Ethics intensive + Mock exams (Weeks 24-26)
Weeks 24-26: Ethics intensive study (35-45 hours total, approximately 12-15 hours per week) plus 4-6 full mock exams. Take one mock exam every 3-4 days. Review weak areas identified in mocks. Ideally, take the final week off work for uninterrupted intensive preparation.

Total timeline: 26 weeks (6 months) = 350-400 study hours.

Use the 300Hours free study planner to track progress and adjust if you fall behind.

Frequently asked questions about CFA Level 2 study order

How is CFA Level 2 study order different from Level 1?

Level 2 requires prioritizing high-weight topics first (FSA, Fixed Income) rather than starting with foundational tools (Quant). This is because Level 2’s topic weights are more evenly distributed (all can be 10%) compared to Level 1 where Ethics (15-20%) clearly dominates. You cannot afford to skip major Level 2 topics, so you must cover difficult content while motivation is high.

Can I study all 10 Level 2 topics evenly based on 10% weighting?

No. While topics can theoretically be weighted evenly at 10%, actual exam weights range from 5-15% per topic. More importantly, topics vary dramatically in volume and difficulty.

FSA and Fixed Income require 40-50 hours each despite being 10-15%, while Economics might take 15-20 hours for the same weight. Allocate time based on content volume and difficulty, not just exam weight percentages.

Should I split Quantitative Methods or study it all at once?

Study all Quantitative Methods (LM 1-7) together in one block. Unlike Level 1 where QM was split due to broad foundational content, Level 2’s QM focuses specifically on regression and time series analysis. These concepts build on each other sequentially and should be mastered together before applying them in Portfolio Management and Equity topics.

How long should I spend on each CFA Level 2 topic?

High-weight, high-difficulty topics (FSA, Fixed Income, Equity): 40-50 hours each.

Medium-weight topics (Portfolio Management, Ethics): 30-40 hours each.

Lower-weight topics (Quantitative Methods, Derivatives, Alternatives, Corporate Issuers, Economics): 15-25 hours each.

Total recommended: 350-400 hours for Level 2, higher than Level 1’s 300 hours due to increased depth.

Why save Ethics for last instead of spreading it throughout?

Ethics is 10-15% of Level 2 but is memorization-heavy rather than conceptual. Material memorized 3-4 weeks before the exam has highest retention.

Additionally, Ethics has minimal concept dependencies with other topics, so studying it last doesn’t disadvantage you elsewhere. Many successful candidates use a “light review early, intensive study final month” approach.

How do I balance studying with working full-time for Level 2?

Level 2 requires 350-400 hours over 6 months, averaging 15-17 hours per week. Most working professionals study 2 hours on weekdays (early morning or evening) and 6-8 hours on weekends.

Critical success factors: start studying 6-9 months before the exam, take the final week off work for intensive mock exams and review, and maintain discipline with your schedule to avoid falling behind.

Can I use my Level 1 study order approach for Level 2?

No. Level 1 study order works because topic weights are clearly differentiated (Ethics 15-20%, major topics 11-14%, minor topics 5-10%).

Level 2’s flatter distribution of topic weights (all topics 5-15%) requires a different approach: prioritize high-weight content first regardless of difficulty, because you cannot skip any major topic. The stakes for poor time management are higher in Level 2.