This portfolio has only about 3.8 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced Portfolio with High Diversification and Tech-Heavy Allocation

Report created on Jul 26, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio consists of three major ETFs: Vanguard S&P 500 ETF at 50%, Invesco NASDAQ 100 ETF at 30%, and Vanguard Total International Stock Index Fund ETF Shares at 20%. This composition indicates a strong preference for large-cap U.S. equities, with a significant portion also allocated to international stocks. The portfolio is broadly diversified across different sectors and geographies, making it resilient to specific market downturns. However, the heavy weighting in U.S. equities, especially in tech, could expose it to sector-specific risks.

Growth Info

Historically, the portfolio has performed well with a Compound Annual Growth Rate (CAGR) of 12.22%. The maximum drawdown was -28.12%, which highlights its volatility during market downturns. The fact that 15 days make up 90% of returns suggests that the portfolio's performance is highly dependent on a few high-return days. This kind of performance is generally good for long-term growth but requires the investor to withstand significant short-term volatility.

Projection Info

Using a Monte-Carlo simulation with 1,000 runs, the portfolio's future performance was projected. The median (50th percentile) end portfolio value is 354.05%, with the 5th percentile at 45.29% and the 67th percentile at 512.55%. The simulations indicate a high likelihood of positive returns, with 987 out of 1,000 simulations showing gains. The annualized return across all simulations is 12.89%, suggesting a strong potential for future growth, albeit with some risk.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is overwhelmingly composed of stocks (99.33%), with negligible amounts in cash and other categories. This heavy stock allocation means the portfolio is geared for growth but comes with higher volatility. While stocks generally offer higher returns over the long term, the lack of bonds or other stabilizing asset classes could make the portfolio more susceptible to market swings. Diversifying into bonds or other asset classes could reduce risk.

Sectors Info

  • Technology
    33%
  • Consumer Discretionary
    11%
  • Financials
    10%
  • Telecommunications
    10%
  • Health Care
    10%
  • Industrials
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation is heavily tilted towards Technology (32.81%), followed by Consumer Cyclicals (11.44%) and Financial Services (10.47%). This indicates a strong growth orientation but also exposes the portfolio to sector-specific risks, especially in technology. While tech stocks have driven substantial gains in recent years, they are also more volatile. A more balanced sector allocation could help mitigate this risk and provide more stability.

Regions Info

  • North America
    80%
  • Europe Developed
    9%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is highly concentrated in North America (80.41%), with smaller allocations to Europe Developed (8.65%) and Japan (3.31%). This U.S.-centric focus means the portfolio is heavily influenced by the U.S. market's performance. While the U.S. has been a strong performer, diversifying more into other regions could reduce risk and provide exposure to different economic cycles. Increasing allocations to emerging markets could also offer growth opportunities.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.70%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 1.48%

The portfolio does not seem to focus on dividend yield, given the heavy allocation to growth-oriented ETFs like the NASDAQ 100 and S&P 500. While these ETFs may offer some dividends, they are not the primary source of returns. For investors seeking regular income, incorporating higher-dividend-paying stocks or ETFs could provide a more balanced approach. Dividend-paying stocks can also offer some downside protection in volatile markets.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) is relatively low at 0.08%, which is excellent for long-term growth. Low costs mean more of the investment returns stay in the portfolio, compounding over time. This is particularly important for investors with a long investment horizon. However, it's always a good idea to periodically review the expense ratios to ensure they remain competitive. Keeping costs low is a key factor in maximizing net returns.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey