A strategically diversified portfolio with a balanced risk profile and global exposure

Report created on Jul 19, 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 heavily weighted towards global and emerging market equities, with a 70% allocation in the SPDR® MSCI World StrategicFactors ETF and a 10% allocation in the SPDR® MSCI Emerging Markets StrategicFactors ETF. The inclusion of quality and small-cap multifactor ETFs from both the U.S. and international markets further diversifies the asset mix. This composition suggests a strategic approach to capturing growth across developed and emerging markets, while the small-cap exposure adds a layer of potential for higher returns albeit with increased volatility.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.49%, with a maximum drawdown of -32.50%. These figures indicate a strong performance trajectory, although the significant drawdown highlights periods of high volatility. It's important to remember that past performance is not indicative of future results, and periods of high returns can often be accompanied by increased risk.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, this portfolio shows a wide range of potential future returns. The simulations suggest a median increase of 464.7% in portfolio value, with a very high percentage of simulations resulting in positive returns. However, it's crucial to note the limitations of such projections, as they cannot account for unforeseen market changes and rely heavily on past performance patterns.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks, with a 99% allocation, and a minimal cash holding. This high equity exposure aligns with the portfolio's balanced risk profile but may subject it to higher volatility. Diversification across asset classes is limited, suggesting an aggressive growth strategy that assumes higher risk for the potential of higher returns.

Sectors Info

  • Technology
    21%
  • Financials
    17%
  • Industrials
    12%
  • Health Care
    11%
  • Consumer Staples
    10%
  • Telecommunications
    9%
  • Consumer Discretionary
    8%
  • Energy
    4%
  • Utilities
    3%
  • Basic Materials
    3%
  • Real Estate
    2%

Sector-wise, the portfolio is well-diversified with significant allocations in technology, financial services, and industrials, among others. This sectoral spread mitigates risks associated with over-exposure to any single sector. However, the high concentration in technology and financial services sectors could mean higher sensitivity to market fluctuations in these areas.

Regions Info

  • North America
    64%
  • Europe Developed
    16%
  • Japan
    7%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Africa/Middle East
    2%
  • Australasia
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America and developed European markets, with smaller exposures to emerging markets and Asia. This distribution provides a solid foundation in stable, developed markets while also tapping into the growth potential of emerging economies. However, the relatively low allocation to emerging markets might limit exposure to high-growth opportunities in these regions.

Market capitalization Info

  • Large-cap
    38%
  • Mega-cap
    34%
  • Mid-cap
    21%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown shows a balanced approach, with a mix of big, mega, and medium cap stocks. This blend can offer a balance between stability offered by large-cap companies and the growth potential of medium-cap stocks. However, the lower allocation to small and micro caps suggests a cautious approach to 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.

Considering the Efficient Frontier, the current allocation appears to be well-optimized for a balance between risk and return based on historical data. However, continuous reassessment is necessary to ensure that the portfolio remains aligned with the investor's risk tolerance and investment goals, especially in changing market conditions.

Dividends Info

  • iShares MSCI Intl Small-Cap Multifactor ETF 4.10%
  • SPDR® MSCI Emerging Markets StrategicFactors ETF 4.00%
  • SPDR® MSCI World StrategicFactors ETF 1.80%
  • iShares MSCI USA Small-Cap Multifactor ETF 1.30%
  • Invesco S&P 500® Quality ETF 1.10%
  • Weighted yield (per year) 2.04%

The portfolio's dividend yield stands at 2.04%, with the highest yields from the small-cap and emerging market ETFs. This yield contributes to the total return, providing a steady income stream in addition to potential capital gains. However, the focus on growth over income is evident from the overall moderate yield.

Ongoing product costs Info

  • iShares MSCI Intl Small-Cap Multifactor ETF 0.23%
  • SPDR® MSCI Emerging Markets StrategicFactors ETF 0.30%
  • SPDR® MSCI World StrategicFactors ETF 0.30%
  • iShares MSCI USA Small-Cap Multifactor ETF 0.15%
  • Invesco S&P 500® Quality ETF 0.15%
  • Weighted costs total (per year) 0.27%

With an average Total Expense Ratio (TER) of 0.27%, the portfolio is relatively cost-efficient, which is beneficial for long-term growth. Lower costs translate directly into higher net returns, making it crucial to maintain this efficiency as the portfolio evolves.

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