A balanced and broadly diversified portfolio with a strong focus on global equities and technology

Report created on Jun 9, 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 primarily consists of three ETFs targeting major equity markets: international stocks, the NASDAQ 100, and the S&P 500, with a significant emphasis on the international component. This structure offers a broad exposure across different regions and sectors, with a notable lean towards technology. The allocation between these ETFs suggests a strategy aimed at capturing growth from both U.S. and international markets, while the weightings indicate a preference for global diversification over domestic concentration.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.01%, with a maximum drawdown of -28.55%. These figures highlight the portfolio's ability to generate strong returns, albeit with periods of significant volatility. The performance is reflective of the inherent risks and rewards associated with equity investments, especially in tech-heavy and international exposures. The days contributing most to returns underscore the impact of short-term market movements on overall performance, emphasizing the importance of a long-term investment horizon.

Projection Info

Using Monte Carlo simulation, a tool that forecasts potential outcomes by varying random inputs within historical ranges, the portfolio's future performance shows a wide range of possibilities. With a median projected increase of 464.4% and 993 out of 1,000 simulations yielding positive returns, the outlook appears generally optimistic. However, the broad spread from the 5th to the 67th percentile underscores the uncertainty and risk involved, suggesting that while the potential for high returns exists, so does the risk of significant downturns.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

The portfolio's near-exclusive investment in stocks, complemented by a minimal cash holding, positions it for growth but also exposes it to market volatility. This asset class distribution is typical for investors seeking higher returns and who are willing to accept the associated risks. The lack of alternative asset classes, such as bonds or real estate, limits diversification benefits that could mitigate volatility, suggesting a review of allocation could be beneficial for risk management.

Sectors Info

  • Technology
    26%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sectoral allocation reveals a heavy tilt towards technology, followed by financial services and consumer cyclicals. This concentration in tech and growth-oriented sectors may lead to higher volatility, especially during market downturns or interest rate hikes. However, it also positions the portfolio to capitalize on the growth potential of these industries. Balancing sector exposure could reduce risk without significantly compromising growth potential.

Regions Info

  • North America
    48%
  • Europe Developed
    22%
  • Asia Emerging
    9%
  • Japan
    9%
  • Asia Developed
    5%
  • Australasia
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographic allocation shows a balanced approach between North America and developed European markets, with meaningful exposure to emerging markets in Asia. This diversified global reach enhances the portfolio's growth prospects by tapping into different economic cycles and market dynamics. However, the relatively low exposure to emerging markets outside of Asia might represent a missed opportunity for higher growth rates, albeit with added risk.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    2%

The emphasis on mega and big-cap stocks suggests a focus on stability and lower volatility relative to smaller companies. These companies are typically more established and may offer consistent returns and dividends. However, the limited exposure to small and micro-cap stocks may restrict potential high-growth opportunities, which can be particularly relevant in sectors like technology and healthcare.

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 current allocation appears well-positioned on the Efficient Frontier, indicating an optimal balance between expected returns and risk for the given asset mix. However, continuous monitoring and rebalancing are essential to maintain this efficiency, especially considering market fluctuations and changing economic conditions. Adjustments may be necessary to align with the investor's evolving risk tolerance and financial goals.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.60%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.03%

The dividend yields from the ETFs contribute to the portfolio's total income, with the international stock ETF offering the highest yield. This income can provide a buffer against market volatility and contribute to total returns, especially in fluctuating markets. Considering the portfolio's focus on growth, the dividend yields also offer a welcome source of passive income, complementing capital gains.

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 0.05%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) is impressively low, enhancing long-term return potential by minimizing cost drag. This cost efficiency is crucial for maximizing net returns, especially in a low-yield environment. The low costs associated with these ETFs are indicative of the portfolio's well-thought-out construction, prioritizing both growth potential and cost efficiency.

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