A globally diversified portfolio with a focus on large-cap stocks and income generation
Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Balanced Investors
This portfolio suits an investor seeking balanced growth with moderate risk tolerance and a long-term horizon. It prioritizes equity exposure while maintaining a focus on income generation through dividends. Ideal for individuals aiming to build wealth over time, it offers diversification across global markets and sectors. The portfolio's structure supports steady returns with a focus on large-cap stability, making it suitable for investors comfortable with equity market fluctuations.
Positions
-
Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 80.00% -
JPMorgan Nasdaq Equity Premium Income ETF
JEPQ - US46654Q2030 10.00% -
Berkshire Hathaway Inc
BRK-B - US0846707026 5.00% -
JPMorgan Chase & Co
JPM - US46625H1005 5.00%
This portfolio is heavily weighted towards equity, with 80% in the Vanguard Total World Stock Index Fund ETF, 10% in the JPMorgan Nasdaq Equity Premium Income ETF, and 10% in individual stocks like Berkshire Hathaway and JPMorgan Chase. The composition leans heavily on stocks, aligning with typical balanced portfolios that aim for growth with moderate risk. While the allocation is broadly diversified across global equities, the high concentration in a single ETF may limit flexibility. Consider adding a small allocation to fixed income or alternative investments to further balance risk.
Growth
Historically, this portfolio has shown a solid Compound Annual Growth Rate (CAGR) of 10.58%, with a maximum drawdown of -17.20%. This indicates a robust performance with moderate volatility, consistent with a balanced risk profile. The portfolio's performance outpaces many traditional benchmarks, suggesting effective asset selection. However, past performance, while informative, does not guarantee future results. To sustain growth, periodically review the portfolio's alignment with your financial goals and risk tolerance.
Projection
Monte Carlo simulations provide a range of potential future outcomes based on historical data, offering a glimpse into possible portfolio trajectories. With a 50th percentile end value of 691.3%, the projections suggest strong growth potential. However, these are based on historical trends and assumptions, which may not hold in the future. Regularly revisiting assumptions and adjusting for changing market conditions is crucial for maintaining growth expectations.
Asset classes
- Stocks 97%
- No data 2%
- Cash 1%
- Other 0%
The portfolio's asset allocation is predominantly in stocks, accounting for 97% of the total. While this supports growth, it also exposes the portfolio to equity market volatility. A balanced approach typically includes a mix of asset classes such as bonds or real estate, which can provide stability during market downturns. Diversifying across asset classes can enhance risk-adjusted returns and provide a cushion against market fluctuations.
Sectors
- Technology 24%
- Financials 24%
- Consumer Discretionary 10%
- Industrials 9%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Energy 3%
- Basic Materials 3%
- Real Estate 2%
- Utilities 2%
Sector allocation reveals a significant focus on technology and financial services, each comprising 24% of the portfolio. This concentration suggests potential exposure to sector-specific risks, such as regulatory changes or economic shifts. A more balanced sector distribution could mitigate these risks. Consider diversifying into sectors with lower representation, like utilities or real estate, to enhance resilience against sector-specific downturns.
Regions
- North America 73%
- Europe Developed 12%
- Asia Emerging 5%
- Japan 4%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
- Europe Emerging 0%
Geographically, the portfolio is heavily weighted towards North America, comprising 73% of the assets. While this reflects the home bias common in U.S.-based portfolios, it may limit exposure to growth opportunities in emerging markets. Increasing allocations to regions like Asia or Latin America could provide diversification benefits and access to higher growth potential. Balancing geographic exposure can help mitigate regional economic risks.
Market capitalization
- Mega-cap 48%
- Large-cap 28%
- Mid-cap 16%
- Small-cap 4%
- Micro-cap 1%
The portfolio is predominantly invested in large-cap stocks, with 48% in mega-cap and 28% in big-cap companies. This focus on larger companies typically offers stability and lower volatility compared to small-cap stocks. However, it may also limit growth potential. Including a modest allocation to small or mid-cap stocks could enhance growth prospects while maintaining a balanced risk profile.
Dividends
- JPMorgan Nasdaq Equity Premium Income ETF 11.50%
- JPMorgan Chase & Co 1.60%
- Vanguard Total World Stock Index Fund ETF Shares 2.00%
- Weighted yield (per year) 2.83%
The portfolio's dividend yield is 2.83%, with significant contributions from the JPMorgan Nasdaq Equity Premium Income ETF. Dividends provide a steady income stream, which can be particularly attractive during periods of market volatility. For investors seeking income, maintaining or increasing exposure to high-yielding assets can enhance total returns. However, balance this with growth opportunities to ensure long-term capital appreciation.
Ongoing product costs
- JPMorgan Nasdaq Equity Premium Income ETF 0.35%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.09%
The portfolio's total expense ratio (TER) is 0.09%, which is impressively low and supports better long-term performance by minimizing costs. This low-cost structure is a significant advantage, as higher costs can erode returns over time. Continuously monitoring and managing costs is essential to maximizing net returns. Consider reviewing the cost structure periodically to ensure it remains competitive.
Risk vs. return
This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.
The Efficient Frontier suggests that the current portfolio could be optimized to achieve a higher expected return of 22.71% with a risk level of 20.26%. This optimization involves reallocating existing assets to achieve the best possible risk-return ratio. However, this approach focuses solely on maximizing returns and may not align with other goals, such as income generation or sector diversification. Regularly reassess your priorities to ensure the portfolio remains aligned with your overall investment strategy.
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