This portfolio has only about 11 months 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 strong growth potential and diverse international exposure

Report created on Dec 16, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is composed primarily of ETFs with a focus on equities, featuring a 35% allocation to the Vanguard S&P 500 Growth Index Fund ETF, a 25% allocation to the iShares Asia 50 ETF, and a 20% allocation to the iShares MSCI Europe Small-Cap ETF. The remaining 15% is invested in the Vanguard Total International Stock Index Fund ETF, with a 5% allocation to the iShares Bitcoin Trust. This structure indicates a strong emphasis on growth, with a small allocation to cryptocurrency for diversification. The portfolio is balanced, offering exposure to various regions and sectors, which can help mitigate risk and capture opportunities across different markets.

Growth Info

Historically, the portfolio has demonstrated impressive performance, with a compound annual growth rate (CAGR) of 28.41%. This suggests strong past returns, although it's important to remember that past performance is not indicative of future results. The maximum drawdown of -10.77% highlights the potential for significant short-term losses, which is a common risk associated with growth-oriented portfolios. Investors should be aware of the volatility and be prepared for fluctuations. It is advisable to maintain a long-term perspective to smooth out these fluctuations and benefit from potential growth over time.

Projection Info

Forward projections using Monte Carlo simulation indicate a wide range of potential outcomes for this portfolio. With 1,000 simulations, the analysis provides end portfolio values at different percentiles: a 5th percentile of 1,551.6%, a median (50th percentile) of 10,237.75%, and a 67th percentile of 17,352.89%. While these projections offer insights into possible future performance, they rely on historical data and assumptions, which may not fully capture future market dynamics. Investors should use these projections as a guide, not a guarantee, and remain adaptable to changing market conditions.

Asset classes Info

  • Stocks
    94%
  • Other
    5%

The portfolio is heavily weighted towards stocks, accounting for 94.42% of the allocation, with a small 5.18% in other assets, primarily cryptocurrency. This allocation suggests a strong focus on capital appreciation rather than income generation. While stocks offer growth potential, they are also subject to higher volatility compared to other asset classes like bonds. Investors should consider their risk tolerance and investment horizon when evaluating this allocation. Diversifying into additional asset classes, such as fixed income, could help reduce volatility and provide more stable returns.

Sectors Info

  • Technology
    32%
  • Consumer Discretionary
    13%
  • Financials
    13%
  • Telecommunications
    10%
  • Industrials
    9%
  • Health Care
    5%
  • Consumer Staples
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Energy
    2%
  • Utilities
    1%

Sector allocation in this portfolio is diverse, with a significant 32.21% in technology, followed by consumer cyclicals and financial services. This indicates a strong tilt towards sectors that have historically driven growth, but also come with higher volatility. While such concentration can lead to substantial gains during market upswings, it also increases exposure to sector-specific risks. Investors might consider rebalancing to include more defensive sectors, such as healthcare or utilities, to enhance stability and reduce potential downside risk.

Regions Info

  • North America
    36%
  • Europe Developed
    26%
  • Asia Developed
    17%
  • Asia Emerging
    12%
  • Japan
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio has a broad international exposure, with 36.29% in North America, 25.50% in developed Europe, and 16.92% in developed Asia. This diverse allocation helps mitigate region-specific risks and captures growth opportunities across different markets. However, the relatively lower exposure to emerging markets could limit potential gains from rapidly growing economies. Investors seeking to capitalize on global growth trends might consider increasing allocations to emerging markets, while being mindful of the higher risks associated with these regions.

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 can potentially be optimized using the Efficient Frontier, which seeks to achieve the best possible risk-return ratio by adjusting the allocation of existing assets. This involves rebalancing to find the optimal mix where expected returns are maximized for a given level of risk. While the portfolio is already diversified, exploring optimization can enhance efficiency by fine-tuning allocations. However, it's important to note that this process does not guarantee improved diversification or alignment with other investment goals, and should be considered as part of a broader strategy.

Dividends Info

  • iShares Asia 50 ETF 1.90%
  • iShares MSCI Europe Small-Cap ETF 3.20%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.60%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.78%

The portfolio's dividend yield stands at 1.78%, with the iShares MSCI Europe Small-Cap ETF and Vanguard Total International Stock Index Fund ETF providing the highest yields. Dividends can be a valuable source of income and contribute to total returns, especially during periods of market volatility. However, the current yield is modest, reflecting the portfolio's growth orientation. Investors seeking higher income might consider reallocating some assets to higher-yielding investments, while balancing the need for growth and income based on their financial goals.

Ongoing product costs Info

  • iShares Asia 50 ETF 0.50%
  • iShares Bitcoin Trust 0.12%
  • iShares MSCI Europe Small-Cap ETF 0.42%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.26%

The total expense ratio (TER) for this portfolio is 0.26%, which is relatively low, indicating cost-effective management. Lower costs can enhance long-term returns by minimizing the drag on performance. However, investors should remain vigilant about fees associated with trading and rebalancing, as these can add up over time. Regularly reviewing the cost structure and exploring opportunities to reduce expenses, such as switching to lower-cost funds or platforms, can help maximize net returns and improve overall portfolio efficiency.

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