This portfolio has only about 3.8 years 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 and Broadly Diversified Portfolio with Strong Historical Returns

Report created on Jul 26, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio consists of four main ETFs: Vanguard S&P 500 ETF (40%), Invesco NASDAQ 100 ETF (20%), Vanguard Total International Stock Index Fund ETF Shares (20%), and Health Care Select Sector SPDR Fund (20%). This composition indicates a focus on large-cap U.S. stocks with a significant allocation to international stocks and the healthcare sector. This broad diversification helps mitigate risks associated with any single sector or region, ensuring a balanced approach to potential market fluctuations.

Growth Info

Historically, the portfolio has demonstrated strong performance with a compound annual growth rate (CAGR) of 11.64%. However, it has also experienced a maximum drawdown of -24.65%, indicating that while the returns are robust, there can be significant downturns. The fact that 90% of the returns come from just 16 days highlights the importance of staying invested to capture these high-return periods, which are often unpredictable.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio shows a median (50th percentile) end value of 344.54% of the initial investment. The 5th percentile projection is 51.67%, while the 67th percentile is 494.84%. Monte Carlo simulations use random sampling to predict future performance, providing a range of possible outcomes. This indicates a high likelihood of positive returns, with an annualized return of 12.38% across all simulations.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted towards stocks, with 99.32% in equities and minimal allocations to cash and other assets. This high equity allocation is typical for a balanced portfolio, aiming for growth while accepting moderate risk. To maintain balance, consider periodically reviewing the allocation to ensure it aligns with risk tolerance and investment goals, especially during market fluctuations.

Sectors Info

  • Health Care
    28%
  • Technology
    25%
  • Financials
    9%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation is diverse, with significant investments in healthcare (28.05%) and technology (24.82%). Other sectors include financial services, consumer cyclicals, and communication services. This diversification across multiple sectors helps reduce the risk of sector-specific downturns. However, the heavy weighting in healthcare and technology suggests a potential vulnerability to sector-specific risks, which should be monitored regularly.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (80.75%), with smaller allocations to Europe Developed, Japan, and various other regions. This North American focus aligns with the strong performance of U.S. markets but may limit exposure to growth opportunities in other regions. To enhance global diversification, consider gradually increasing exposure to emerging markets and other international regions.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.70%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Health Care Select Sector SPDR® Fund 1.50%
  • Weighted yield (per year) 1.58%

The portfolio's dividend yield data is not provided, but dividends can be an important component of total returns, especially during volatile markets. High-dividend stocks can offer a steady income stream and potentially lower volatility. If dividends are a priority, consider reviewing the yield of each ETF and potentially adding more high-dividend assets to balance growth and income objectives.

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 0.08%
  • Health Care Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) is 0.08%, which is relatively low. Lower costs are beneficial as they ensure more of the returns are retained by the investor. The expense ratios of the individual ETFs range from 0.03% to 0.15%, reflecting cost-efficient investment choices. Continuously monitoring and aiming to minimize investment costs can significantly enhance long-term returns.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey