Balanced and highly diversified investment portfolio with an emphasis on growth and stability

Report created on Jul 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio showcases a strategic blend of 74% stocks, 10% bonds, 5% real estate, 5% commodities (gold), and 6% cash equivalents, which is commendable for achieving diversification. The significant allocation to the Fidelity 500 Index Fund and the FIDELITY TOTAL INTERNATIONAL INDEX FUND illustrates a strong foundation in both US and international equities. The inclusion of bonds, real estate, and commodities further enhances the portfolio's resilience against market volatility.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.07%, with a maximum drawdown of -27.68%. This performance is notable, especially when considering the days contributing to 90% of returns were limited to 21, indicating that gains were not overly reliant on a few outlier days. This historical performance suggests a well-constructed portfolio that balances growth with risk management effectively.

Projection Info

Monte Carlo simulations, based on 1,000 runs, suggest a wide range of outcomes with a median potential increase of 207.8% and a 67th percentile at an impressive 303.2%. This forward projection underscores the portfolio's potential for significant growth while highlighting the inherent uncertainty in investing. Remember, while these simulations are useful for gauging potential outcomes, they are based on historical data and cannot guarantee future results.

Asset classes Info

  • Stocks
    74%
  • Bonds
    10%
  • Cash
    6%
  • Other
    5%
  • Real Estate
    5%

The asset class distribution within this portfolio is aligned with a balanced risk profile, offering a mix of growth potential through stocks and stability through bonds and cash equivalents. Real estate and commodities provide inflation hedging and diversification benefits. This allocation supports a strategic approach to risk management while seeking growth, aligning well with the portfolio's balanced risk classification.

Sectors Info

  • Technology
    18%
  • Health Care
    13%
  • Financials
    13%
  • Industrials
    7%
  • Real Estate
    6%
  • Consumer Discretionary
    6%
  • Telecommunications
    5%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Consumer Discretionary
    1%

Sector allocations are diversified across technology, healthcare, financial services, and industrials, among others, with technology leading at 18%. This sectoral spread mitigates sector-specific risks and capitalizes on growth opportunities across the economy. However, the concentration in technology and healthcare, while reflective of current market trends, suggests a review to ensure alignment with the investor's risk tolerance and long-term objectives.

Regions Info

  • North America
    62%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic exposure predominantly in North America (62%) with diversified investments across developed Europe, Japan, and emerging markets in Asia underscores a balanced approach to global diversification. This geographic spread helps in tapping into growth opportunities worldwide while mitigating risks associated with regional economic downturns. Nevertheless, the portfolio may benefit from slightly increased exposure to emerging markets to enhance growth prospects.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    29%
  • Mid-cap
    15%
  • Small-cap
    2%

The market capitalization breakdown, with a focus on mega (32%) and big (29%) cap stocks, positions the portfolio towards companies with a history of stability and growth. However, the relatively lower allocation to medium, small, and micro caps suggests potential room for increased diversification and exposure to high-growth opportunities in smaller companies, albeit with higher risk.

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.

Click on the colored dots to explore allocations.

The portfolio's current allocation is close to the Efficient Frontier, indicating an optimal risk-return balance given the current asset mix. However, the analysis suggests a potential for slightly higher expected returns at the same risk level. Investors might consider fine-tuning asset allocations, particularly by exploring opportunities for increased exposure to emerging markets or small and medium-cap stocks, to potentially enhance returns without significantly altering the risk profile.

Dividends Info

  • SPDR® Bloomberg 1-3 Month T-Bill ETF 4.50%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • Fidelity 500 Index Fund 0.90%
  • Schwab U.S. Aggregate Bond ETF 4.10%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Health Care Select Sector SPDR® Fund 1.80%
  • Weighted yield (per year) 1.93%

The portfolio's dividend yield stands at an average of 1.93%, contributing to its total return. This yield, sourced from a mix of equity and bond investments, offers a balanced approach to income generation and growth. For investors seeking higher income, considering assets with higher dividend yields or reallocating towards income-focused funds may be beneficial.

Ongoing product costs Info

  • SPDR® Bloomberg 1-3 Month T-Bill ETF 0.14%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Fidelity 500 Index Fund 0.02%
  • SPDR Gold Mini Shares 0.10%
  • Schwab U.S. Aggregate Bond ETF 0.03%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Health Care Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.05%

With a total expense ratio (TER) of 0.05%, the portfolio is efficiently managed in terms of costs, which is crucial for enhancing long-term returns. Low-cost index funds and ETFs form the core of the portfolio, underlining a cost-conscious strategy that maximizes investor returns by minimizing expense drag.

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