Balanced and diversified portfolio with a strong focus on dividend-yielding ETFs and significant US exposure

Report created on Jul 15, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is structured around a core of equity ETFs, heavily weighted towards the US market, with a balanced mix of dividend-focused and broad-market index funds. This composition suggests a strategy aiming for growth through market participation while seeking income through dividends. The significant allocations to the SPDR® S&P Dividend ETF and Vanguard S&P 500 ETF, each at 30%, highlight a preference for reliable, income-generating assets alongside broad market exposure. The inclusion of specialized ETFs like the Unusual Whales Subversive Democratic Trading ETF introduces thematic diversification but may also add unique risks and opportunities.

Growth Info

Historically, the portfolio has demonstrated robust growth with a Compound Annual Growth Rate (CAGR) of 14.99%. The maximum drawdown of -15.32% indicates a moderate level of risk, consistent with the balanced risk profile. The concentration on dividend-yielding ETFs has likely contributed to this steady performance, providing a cushion during market downturns. However, it's important to note that past performance is not a reliable indicator of future results, and investors should remain vigilant to changing market conditions.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of potential outcomes, with a median increase of 888.1%. While these simulations offer insight into possible future states, they rely on historical data and cannot account for unforeseen market shifts. Investors should use these projections as one of many tools in decision-making, keeping in mind the inherent uncertainties in market behavior.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks, with a minimal cash reserve. This allocation is suitable for investors with a moderate risk tolerance seeking growth over the long term. However, the lack of diversification into other asset classes such as bonds or real estate might limit the portfolio's ability to hedge against stock market volatility. Broadening the asset class mix could enhance resilience without significantly diluting growth potential.

Sectors Info

  • Technology
    22%
  • Industrials
    14%
  • Financials
    13%
  • Consumer Discretionary
    10%
  • Consumer Staples
    9%
  • Health Care
    9%
  • Telecommunications
    6%
  • Utilities
    6%
  • Basic Materials
    4%
  • Energy
    3%
  • Real Estate
    3%

Sectoral allocation reveals a well-rounded exposure, with a strong tilt towards technology, industrials, and financial services. This sectoral mix reflects a growth-oriented strategy but also introduces sector-specific risks, particularly in technology, which can be volatile. Diversifying into more defensive sectors or increasing allocations to consumer defensive and healthcare could provide stability in different market conditions.

Regions Info

  • North America
    85%
  • Europe Developed
    7%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily concentrated in North America, particularly in the US market. While this focus has historically offered strong growth opportunities, it also exposes the portfolio to regional economic and political risks. Expanding the geographic distribution, especially into developed European and emerging Asian markets, could offer additional growth opportunities and risk mitigation.

Market capitalization Info

  • Large-cap
    33%
  • Mega-cap
    32%
  • Mid-cap
    26%
  • Small-cap
    7%
  • Micro-cap
    1%

The market capitalization breakdown shows a balanced exposure across big, mega, and medium-sized companies, with a smaller allocation to small and micro-caps. This distribution suggests a cautious approach to risk, as larger companies typically offer more stability than their smaller counterparts. However, incorporating a greater proportion of small and micro-cap stocks could enhance growth potential, albeit with increased volatility.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Unusual Whales Subversive Democratic Trading ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation among certain ETFs, particularly those tracking the S&P 500 and the total stock market, indicates redundancy within the portfolio. This overlap reduces the effectiveness of diversification as a risk management tool. Reducing exposure to highly correlated assets and seeking ETFs or securities with lower correlation coefficients could enhance portfolio resilience against market downturns.

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.

Optimization analysis suggests that the portfolio could benefit from reducing overlaps in highly correlated assets to improve diversification. While the current allocation provides a solid foundation, refining the asset mix to include less correlated investments could enhance the portfolio's risk-return profile. This process should consider the investor's risk tolerance and investment goals, ensuring the portfolio remains aligned with their objectives.

Dividends Info

  • Capital Group Dividend Value ETF 1.10%
  • Unusual Whales Subversive Democratic Trading ETF 0.20%
  • SPDR® S&P Dividend ETF 2.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.80%

The portfolio's focus on dividend-yielding ETFs contributes positively to its overall return, providing a steady income stream in addition to capital appreciation. With a total yield of 1.80%, the portfolio leverages dividends as a key component of its investment strategy. Regularly reviewing dividend performance and considering adjustments in light of changing market conditions can ensure this strategy remains effective.

Ongoing product costs Info

  • Capital Group Dividend Value ETF 0.33%
  • Unusual Whales Subversive Democratic Trading ETF 0.76%
  • SPDR® S&P Dividend ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.20%

The portfolio's total expense ratio (TER) of 0.20% is relatively low, enhancing net returns for the investor. The Vanguard ETFs, known for their low costs, play a significant role in maintaining this efficiency. However, the Unusual Whales ETF, with a higher TER, warrants scrutiny to ensure its thematic approach justifies the additional cost. Continuously monitoring costs and their impact on performance is crucial for maintaining an efficient portfolio.

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