Balanced portfolio with a tech tilt and diversified income sources

Report created on Aug 4, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio exhibits a strategic blend of equity and fixed income assets, with a notable emphasis on technology through a 25% allocation in a tech-focused ETF. The presence of large-cap and mid-cap ETFs signifies a tilt towards higher market capitalization companies, while the inclusion of bond ETFs and a dynamic income fund adds a layer of income generation and risk mitigation. The portfolio's structure, heavily weighted towards stocks with a significant technology sector allocation, suggests a pursuit of growth within a framework of balanced risk.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.28% and a maximum drawdown of -19.24%, the portfolio has demonstrated resilience and growth potential. The concentrated days contributing to 90% of returns indicate that while the portfolio has periods of significant gains, it also faces volatility. This performance, when benchmarked against a balanced portfolio's typical return profile, underscores the impact of the tech sector's growth while highlighting the importance of diversification to mitigate drawdown risks.

Projection Info

Monte Carlo simulations, which forecast future performance based on historical data, show a wide range of outcomes with a median increase of 240.8%. While these projections offer a glimpse into potential growth, it's crucial to remember that they are based on past trends, which may not always predict future movements. This method emphasizes the uncertainty in investing, underscoring the importance of maintaining a diversified portfolio to navigate through various market scenarios.

Asset classes Info

  • Stocks
    71%
  • Bonds
    36%

The portfolio's allocation leans heavily towards stocks (71%) with a substantial component in bonds (36%), indicating a balanced approach to growth and income. This mix supports a strategy aimed at achieving moderate growth while providing a buffer against market volatility. Comparing this to a typical balanced portfolio, the allocation aligns well with the goal of diversifying income sources while seeking capital appreciation, albeit with a notable overweight in the technology sector.

Sectors Info

  • Technology
    35%
  • Financials
    9%
  • Industrials
    6%
  • Consumer Discretionary
    5%
  • Health Care
    4%
  • Consumer Staples
    3%
  • Telecommunications
    3%
  • Energy
    2%
  • Basic Materials
    1%
  • Real Estate
    1%
  • Utilities
    1%

Technology, representing 35% of the portfolio, stands out as the dominant sector, followed by diversified allocations in financial services, industrials, and consumer cyclicals. This sectoral distribution reflects a growth-oriented strategy with a strong tech bias, which can introduce higher volatility, especially during market downturns or tech sector corrections. Balancing this with sectors less sensitive to market cycles could enhance stability without significantly compromising growth potential.

Regions Info

  • North America
    77%
  • Europe Developed
    2%

The geographic allocation is heavily skewed towards North America (77%), with minimal exposure to developed Europe and no direct investment in emerging markets or Asia. This concentration in a single region, while benefiting from the robust US market, limits global diversification and exposure to potential growth in other regions. Expanding geographic reach could mitigate risks associated with regional economic downturns and tap into growth opportunities abroad.

Market capitalization Info

  • Mega-cap
    24%
  • Large-cap
    14%
  • Mid-cap
    13%
  • Small-cap
    13%
  • Micro-cap
    5%

With a distribution across mega (24%), big (14%), medium (13%), small (13%), and micro (5%) cap stocks, the portfolio demonstrates a broad market cap range, favoring larger companies. This spread suggests a balanced approach to risk, as larger companies typically offer stability, while smaller companies present growth opportunities. However, the emphasis on larger caps may reflect a conservative tilt within an otherwise growth-oriented strategy.

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 potential for optimization towards the Efficient Frontier, aiming for the highest possible returns for a given level of risk. Adjusting the asset mix to reduce overexposure to the technology sector and increase global diversification could improve the risk-return profile. This optimization process, while theoretical, provides a valuable framework for making informed adjustments that align with the investor's risk tolerance and investment horizon.

Dividends Info

  • Dimensional ETF Trust 1.50%
  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • iShares iBonds Dec 2026 Term Corporate ETF 3.90%
  • iShares iBonds Dec 2026 Term Treasury ETF 3.70%
  • PIMCO Dynamic Income Fund 13.80%
  • Schwab U.S. Large-Cap ETF 1.20%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • Weighted yield (per year) 2.76%

The portfolio's average dividend yield of 2.76% contributes to its income generation, with notable variances across different assets. The dynamic income fund, in particular, offers a high yield, enhancing the portfolio's income profile. This focus on dividends complements the growth strategy by providing a steady income stream, which can be particularly beneficial in volatile markets or for investors seeking regular income.

Ongoing product costs Info

  • Dimensional ETF Trust 0.31%
  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • iShares iBonds Dec 2026 Term Corporate ETF 0.10%
  • iShares iBonds Dec 2026 Term Treasury ETF 0.07%
  • PIMCO Dynamic Income Fund 2.18%
  • Schwab U.S. Large-Cap ETF 0.03%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.33%

With an average Total Expense Ratio (TER) of 0.33%, the portfolio maintains relatively low investment costs, which is crucial for enhancing long-term returns. The PIMCO Dynamic Income Fund, however, stands out with a significantly higher expense ratio, which could impact net returns. Reviewing the cost-benefit of higher-cost investments periodically is essential for ensuring they continue to align with the portfolio's goals and do not disproportionately erode returns.

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