A broadly diversified portfolio with a balanced risk profile and strong growth potential

Report created on Apr 27, 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 heavily weighted towards the iShares Core Equity Portfolio, making up 80% of the total investment. This is complemented by a 15% allocation to the Invesco NASDAQ 100 Index ETF and a 5% allocation to the Fidelity Advantage Bitcoin ETF. This composition suggests a focus on equity investments with a slight exposure to cryptocurrency. Compared to typical benchmark compositions, this portfolio leans heavily on equities, which can offer higher returns but also come with increased volatility. Consider evaluating the cryptocurrency allocation to ensure it aligns with your risk tolerance and financial goals, as its volatility can significantly impact overall portfolio performance.

Growth Info

Historically, the portfolio has delivered a commendable Compound Annual Growth Rate (CAGR) of 10.02%, indicating strong past performance. However, it also experienced a maximum drawdown of -22.98%, highlighting the potential risks during market downturns. This performance is above average compared to many balanced portfolios, which typically aim for steady, moderate growth. While past performance can be encouraging, it's crucial to remember that it doesn't guarantee future results. Regularly reviewing performance against benchmarks can help ensure the portfolio remains on track to meet your financial objectives.

Projection Info

The Monte Carlo simulation, which uses historical data to project future outcomes, indicates a wide range of potential returns. With a 50th percentile outcome showing a 376.1% increase, the projections are optimistic. However, the 5th percentile shows a potential loss of -48.1%, underscoring the inherent risks. While simulations provide valuable insights, they are based on historical data and assumptions, which may not always hold true. It's essential to remain cautious and prepared for various market conditions. Regularly updating projections can help adapt strategies to changing market dynamics.

Asset classes Info

  • US Equity
    49%
  • Stocks
    21%
  • Other
    5%

The portfolio's asset allocation is predominantly in equities, with 49% in US Equity and 21% in other equity categories. This focus on equities suggests a growth-oriented strategy, which can be beneficial for long-term wealth accumulation. However, the lack of significant allocations in fixed income or cash may increase exposure to market volatility. Diversifying into other asset classes could help mitigate risks and provide more stability during market fluctuations. Ensure the current allocation aligns with your risk tolerance and financial goals, and consider periodic rebalancing to maintain the desired risk-reward balance.

Sectors Info

  • Technology
    22%
  • Financials
    17%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    7%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    6%
  • Basic Materials
    5%
  • Utilities
    3%
  • Real Estate
    2%

The portfolio's sector allocation shows a notable concentration in technology at 22%, followed by financial services at 17%. This aligns with common benchmarks, which often have a similar sector distribution. However, a tech-heavy portfolio may experience higher volatility, especially during periods of interest rate hikes or regulatory changes. Balancing sector exposure can help reduce sector-specific risks and enhance diversification. Consider periodically reviewing sector allocations to ensure they align with your market outlook and risk tolerance, making adjustments as needed to maintain a balanced approach.

Regions Info

  • North America
    70%
  • Europe Developed
    13%
  • Japan
    5%
  • Asien Schwellenländer
    2%
  • Asien
    2%
  • Australasia
    2%
  • Afrika/Mittlerer Osten
    1%

Geographically, the portfolio is heavily weighted towards North America, accounting for 70% of the allocation. This is followed by Europe Developed at 13% and smaller allocations to other regions. While this aligns with many global benchmarks, the heavy North American focus may expose the portfolio to regional economic risks. Increasing exposure to underrepresented regions, like emerging markets, could enhance diversification and offer additional growth opportunities. Regularly reviewing geographic allocations can help ensure the portfolio remains well-balanced and resilient to global market shifts.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    30%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization distribution is skewed towards larger companies, with 43% in mega caps and 30% in big caps. This suggests a preference for established, stable companies, which can provide steady returns and lower volatility. However, the limited exposure to small and micro-cap stocks may reduce potential for higher growth. Diversifying across market capitalizations can help balance risk and return, offering exposure to both stability and growth. Consider periodically reviewing and adjusting market cap allocations to align with your investment goals and risk tolerance.

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 be optimized using the Efficient Frontier, which seeks the best risk-return ratio based on the current assets. This involves adjusting allocations to achieve the most efficient balance between risk and return. While the portfolio is broadly diversified, exploring optimization opportunities can enhance performance without significantly altering the overall strategy. Regularly reviewing and adjusting the portfolio using the Efficient Frontier can help maintain optimal risk-adjusted returns and ensure alignment with your investment objectives.

Dividends Info

  • Invesco NASDAQ 100 Index ETF CAD Units 0.50%
  • iShares Core Equity Portfolio 2.10%
  • Weighted yield (per year) 1.76%

The portfolio's total dividend yield is 1.76%, with the iShares Core Equity Portfolio contributing 2.10% and the Invesco NASDAQ 100 Index ETF at 0.50%. Dividends can provide a steady income stream, which is particularly valuable during periods of market volatility. While the yield is modest, it aligns with the growth-oriented nature of the portfolio. If income generation is a priority, consider increasing allocations to higher-yielding assets. Regularly reviewing dividend yields can help ensure the portfolio meets your income needs while maintaining its growth potential.

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