Balanced portfolio with strategic focus on growth and dividends across diverse sectors

Report created on Jul 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a core of U.S. and international equities, with a significant emphasis on large-cap growth and dividend-paying stocks. The allocation includes 30% in both U.S. large-cap growth and international equities, 20% in U.S. large-cap, 15% in U.S. dividend equity, and a smaller 5% in U.S. small-cap stocks. This composition suggests a strategic balance between growth-oriented investments and income-generating assets, underpinned by a broad geographical spread.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.94%, with a maximum drawdown of -33.54%. This performance indicates a resilient growth trajectory over time, albeit with significant volatility. The days contributing to 90% of returns being concentrated in a small number underscores the impact of high-performing days on overall growth.

Projection Info

Forward projections, based on Monte Carlo simulations, indicate a wide range of potential outcomes, with the median scenario suggesting a substantial increase in value. However, it's crucial to remember that such simulations use historical data to forecast future performance, which does not guarantee future results. This method helps in understanding potential volatility and downside risks.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, indicating a high-risk, high-reward strategy. While stocks are known for offering the potential for significant growth, they also come with increased volatility compared to bonds or cash. This asset class allocation fits well with a balanced risk profile but lacks the stability that fixed income or cash equivalents could provide.

Sectors Info

  • Technology
    27%
  • Financials
    14%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is well-diversified, with technology, financial services, and industrials leading the composition. This diversification can help mitigate sector-specific risks. However, the heavy weighting in technology, a sector known for its volatility, suggests a higher risk-reward ratio. Balancing high-growth sectors with more stable ones like consumer defensive or utilities could provide a more steady performance in different market conditions.

Regions Info

  • North America
    73%
  • Europe Developed
    16%
  • Japan
    6%
  • Asia Developed
    2%
  • Australasia
    2%

Geographic allocation underscores a strong bias towards North America, complemented by exposure to developed markets in Europe and Japan. This distribution supports risk management by incorporating both domestic and international equities, though the absence of emerging markets could mean missing out on potential high-growth opportunities.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    32%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's emphasis on mega and big cap stocks aligns with its balanced risk profile, offering stability and potential for growth. However, the limited exposure to small and micro-cap stocks might restrict opportunities for outsized returns that these segments can sometimes offer.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Schwab U.S. Large-Cap ETF
    High correlation

The high correlation between the U.S. Large-Cap Growth and U.S. Large-Cap ETFs indicates overlapping investments that may not contribute to diversification. Reducing exposure to similar assets could enhance the portfolio's risk-adjusted returns by lowering redundancy.

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 could benefit from optimization by addressing the overlap in large-cap U.S. equities to enhance diversification without sacrificing potential returns. Employing the Efficient Frontier concept could help in reallocating assets to achieve the most efficient risk-return profile, focusing on diversifying investments rather than concentrating on highly correlated assets.

Dividends Info

  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab International Equity ETF 2.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Schwab U.S. Large-Cap ETF 1.20%
  • Weighted yield (per year) 1.78%

The portfolio's dividend yield stands at 1.78%, with the U.S. Dividend Equity ETF contributing significantly to income generation. This approach provides a steady income stream, which can be particularly valuable during market downturns or for investors seeking regular income.

Ongoing product costs Info

  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Schwab U.S. Large-Cap ETF 0.03%
  • Weighted costs total (per year) 0.05%

With an overall Total Expense Ratio (TER) of 0.05%, the portfolio is cost-efficient, which is commendable. Lower costs translate directly into higher net returns over time, making this an attractive feature for long-term growth.

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