A well-diversified portfolio with a strong focus on U.S. stocks and moderate international exposure

Report created on May 27, 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 U.S. equities, with a 75% allocation to the iShares Core S&P Total U.S. Stock Market ETF, complemented by a 25% allocation to the iShares Core MSCI Total International Stock ETF. This composition reflects a balanced approach, leaning towards domestic markets while still maintaining a significant international presence. The portfolio's broad diversification across sectors and geographies is designed to mitigate risk while capturing growth opportunities both domestically and abroad.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 11.58% and a maximum drawdown of -34.79%, the portfolio demonstrates robust growth potential tempered by significant volatility. The days contributing to 90% of returns highlight the impact of short-term gains on overall performance. Comparatively, this performance suggests a well-managed risk-return balance, aligning with the portfolio's balanced risk classification.

Projection Info

Utilizing Monte Carlo simulation, which projects future performance based on historical data, this portfolio shows a wide range of potential outcomes. While past performance is not indicative of future results, the simulation's median outcome suggests a solid growth trajectory. However, investors should consider the inherent uncertainty in these projections, especially given the simulation's reliance on historical market behavior.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocation to bonds, cash, or other asset classes. This singular focus on equities enhances growth potential but also increases volatility and risk. Diversifying across different asset classes could provide a buffer against market downturns and reduce overall portfolio volatility.

Sectors Info

  • Technology
    26%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation within the portfolio is heavily weighted towards technology, financial services, and consumer cyclicals, reflecting common trends in the U.S. and global markets. This concentration in high-growth sectors may contribute to the portfolio's strong performance but also exposes it to sector-specific risks. A more balanced sector distribution could help mitigate these risks.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Japan
    4%
  • Asia Emerging
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation underscores a strong preference for North American equities, complemented by diversified international exposure. This strategy benefits from the stability and growth of developed markets while tapping into the potential of emerging markets. However, the relatively low allocation to emerging markets might limit exposure to high-growth opportunities outside the developed world.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    30%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown shows a preference for mega and large-cap stocks, known for their stability and lower volatility compared to smaller companies. This allocation supports the portfolio's balanced risk profile but may limit potential high returns from more volatile small and micro-cap stocks.

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 suggests a well-considered balance between risk and return, potentially positioned near the Efficient Frontier, indicating an optimized risk-return ratio. However, continuous review and adjustment, considering changing market conditions and personal financial goals, can further enhance this optimization.

Dividends Info

  • iShares Core S&P Total U.S. Stock Market ETF 1.30%
  • iShares Core MSCI Total International Stock ETF 2.90%
  • Weighted yield (per year) 1.70%

The portfolio's dividend yield, averaging 1.70%, contributes to total returns, offering a blend of growth and income. This yield is particularly attractive for investors seeking regular income, in addition to capital appreciation. The higher yield on international ETFs also highlights the income-generating potential of global diversification.

Ongoing product costs Info

  • iShares Core S&P Total U.S. Stock Market ETF 0.03%
  • iShares Core MSCI Total International Stock ETF 0.07%
  • Weighted costs total (per year) 0.04%

With an average Total Expense Ratio (TER) of 0.04%, the portfolio benefits from low costs, maximizing returns for investors. This cost efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The portfolio's focus on low-cost ETFs is a strategic choice that supports better performance over time.

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