Balanced portfolio with strong US equity focus and diversified global exposure

Report created on Aug 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, represented by the iShares Core S&P US Total Market ETF, making up 62.60% of the allocation. This is complemented by significant positions in international equities, including developed markets (25.50%) and emerging markets (9.10%), with a minor allocation to Canadian equities (2.80%). This composition reflects a strategy aiming for broad market exposure, leveraging the growth potential of US markets while tapping into international diversification to mitigate risk.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.46%, with a maximum drawdown of -27.99%. This performance indicates a resilient growth trajectory, albeit with notable volatility. The days contributing to 90% of returns number just 32, highlighting the impact of significant market events on performance. Comparing these figures with benchmarks can provide insights into risk management and potential for optimization.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 306.1% return, with a 5th percentile at 42.6% indicating potential downside risk. While these simulations offer valuable insights, they are inherently limited by reliance on past trends, which may not accurately predict future market conditions.

Asset classes Info

  • US Equity
    63%
  • Stocks
    3%

The portfolio's asset allocation leans heavily towards equities, with a minor portion in cash or equivalents. This high equity exposure is typical for growth-oriented portfolios but comes with increased volatility. Diversification across asset classes could be enhanced by incorporating fixed income or alternative investments, which might provide a buffer against market downturns and reduce overall portfolio volatility.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Industrials
    12%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    3%

Sector allocation reveals a heavy concentration in technology (26%) and financial services (17%), followed by industrials and consumer cyclicals. This sector distribution reflects a growth-focused strategy but also concentrates risk in sectors that can be highly volatile or sensitive to economic cycles. Diversifying across a broader range of sectors could help mitigate specific industry risks.

Regions Info

  • North America
    66%
  • Europe Developed
    16%
  • Japan
    6%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (66%), with diversified exposure across Europe, Asia, and other regions. This global allocation enhances diversification, reducing the portfolio's vulnerability to regional economic downturns. However, the heavy North American focus may limit exposure to potential growth in emerging markets and other developing regions.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a bias towards mega (43%) and big (31%) cap stocks, with lesser exposure to medium, small, and micro-cap stocks. This skew towards larger companies is consistent with a lower-risk profile but may limit potential upside from smaller, high-growth companies. Balancing market cap exposure could introduce more growth opportunities, albeit with added 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.

Optimizing the portfolio using the Efficient Frontier could identify allocations that offer a better risk-return trade-off. This approach, however, is based on historical data and assumes that past performance can inform future outcomes. Adjusting the portfolio to move closer to the Efficient Frontier might improve returns for a given level of risk but requires continuous monitoring and adjustment as market conditions evolve.

Dividends Info

  • iShares Core MSCI Emerging Markets IMI Index ETF 1.20%
  • iShares Core MSCI EAFE IMI 0.90%
  • iShares Core S&P/TSX Capped Composite 1.80%
  • iShares Core S&P US Total Market 0.80%
  • Weighted yield (per year) 0.89%

The portfolio's dividend yield averages to 0.89%, with the highest yield from the Canadian equities component. While dividends contribute to total return, the relatively low overall yield reflects the growth-oriented nature of the portfolio. Investors seeking income might consider increasing allocations to higher-yielding assets or sectors.

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