This portfolio has only about 10 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.
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Balanced Portfolio with High-Tech Focus and Diverse Geographic Exposure for Moderate Risk Tolerance

Report created on Jul 15, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is composed of a mix of seven ETFs and one common stock, with a significant allocation towards technology and financial services. The largest position, the First Trust Technology AlphaDEX® Fund, constitutes 26% of the portfolio, indicating a strong tech focus. The presence of both U.S. and international ETFs, such as the iShares India 50 ETF and Amplify International Enhanced Dividend Income ETF, adds a layer of geographic diversification. This mix aligns with a balanced risk profile, offering exposure to various sectors and regions, which is ideal for moderate risk investors looking for growth and income.

Growth Info

Historically, the portfolio has demonstrated impressive performance, with a compound annual growth rate (CAGR) of 27.34%. This indicates strong past returns, although it experienced a maximum drawdown of 10.3%, reflecting periods of volatility. The high growth rate suggests effective asset selection and timing, but the drawdown highlights the need for risk management. Maintaining such performance requires ongoing evaluation and adjustments to minimize downturns while capitalizing on growth opportunities. This historical insight underscores the portfolio's potential but also the importance of monitoring market conditions and maintaining a balanced approach.

Projection Info

Using a Monte-Carlo simulation, which runs thousands of potential future scenarios, the portfolio shows promising forward projections. Assuming a hypothetical initial investment, the simulation's median outcome projects a 1,921.38% return, with a significant number of simulations yielding positive returns. This suggests a strong likelihood of achieving favorable outcomes, although there's still inherent uncertainty. Such projections help in understanding potential future performance but should not be solely relied upon. Regular reviews and adjustments, aligned with personal risk tolerance and financial goals, are crucial for optimizing future returns while managing risk exposure.

Asset classes Info

  • Stocks
    80%
  • Bonds
    12%
  • Cash
    7%
  • Other
    1%

The portfolio's asset class allocation is heavily weighted towards stocks, making up 80% of the total. Bonds and cash account for 12% and 7%, respectively. This stock-heavy allocation is typical for portfolios seeking growth, as equities generally offer higher returns over the long term compared to bonds and cash. However, the minimal allocation to bonds and cash may limit the portfolio's ability to cushion against market volatility. To enhance stability, consider modestly increasing the allocation to bonds, which can provide income and reduce overall risk, aligning with a balanced investment strategy.

Sectors Info

  • Technology
    34%
  • Financials
    15%
  • Industrials
    6%
  • Consumer Discretionary
    6%
  • Telecommunications
    5%
  • Energy
    4%
  • Health Care
    3%
  • Utilities
    3%
  • Consumer Staples
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

The sector allocation reveals a strong bias towards technology, comprising approximately 34% of the portfolio. Financial services follow with 15%, and other sectors like industrials and consumer cyclicals are also represented. This concentration in technology suggests a growth-oriented approach, capitalizing on the sector's potential for innovation-driven returns. However, this focus increases vulnerability to tech sector downturns. Diversifying further across sectors can mitigate such risks, ensuring more stable performance across different market conditions. Balancing sector exposure can also enhance the portfolio's ability to adapt to economic shifts and capitalize on diverse growth opportunities.

Regions Info

  • North America
    65%
  • Asia Emerging
    9%
  • Europe Developed
    3%
  • Latin America
    1%
  • Australasia
    1%

Geographically, the portfolio is predominantly focused on North America, accounting for 65% of the allocation. There is some exposure to emerging markets in Asia and developed regions in Europe, albeit at lower percentages. This geographic distribution offers a blend of stability from developed markets and growth potential from emerging markets. However, the heavy North American focus may limit exposure to global opportunities. Increasing allocations to underrepresented regions can enhance diversification, potentially improving returns and reducing regional risk. This geographic balance can help in capturing growth across various economic cycles and geopolitical landscapes.

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.

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The portfolio optimization chart suggests potential for improvement by shifting along the efficient frontier. Currently, the portfolio offers a solid expected return, but there is room to enhance this without increasing risk. By reallocating assets, one can achieve a more efficient mix that maximizes returns for the same risk level. For those seeking a riskier portfolio, increasing equity exposure might be an option, while a more conservative approach could involve boosting bond allocations. This strategic adjustment can help in achieving a portfolio that better aligns with personal financial goals and risk preferences.

Dividends Info

  • First Trust Technology AlphaDEX® Fund 0.30%
  • Amplify International Enhanced Dividend Income ETF 5.90%
  • iShares Global Infrastructure ETF 3.10%
  • iShares India 50 ETF 0.30%
  • iShares US Small Cap Value Factor ETF 2.10%
  • Toronto Dominion Bank 5.40%
  • Motley Fool 100 Index ETF 0.10%
  • YieldMax Universe Fund Of Opt Inc ETF 34.90%
  • Weighted yield (per year) 7.94%

The portfolio's dividend yield stands at 7.94%, with notable contributions from the YieldMax Universe Fund Of Opt Inc ETF and Toronto Dominion Bank. This yield provides a steady income stream, appealing for investors seeking regular cash flow. High dividend yield can also offer a buffer against market volatility. However, reliance on a few high-yield components might introduce concentration risk. Distributing dividend exposure across more assets can enhance income stability. This strategy ensures a consistent income flow while maintaining a balanced risk profile, aligning with the portfolio's growth and income objectives.

Ongoing product costs Info

  • First Trust Technology AlphaDEX® Fund 0.62%
  • Amplify International Enhanced Dividend Income ETF 0.66%
  • iShares Global Infrastructure ETF 0.41%
  • iShares India 50 ETF 0.89%
  • iShares US Small Cap Value Factor ETF 0.20%
  • Motley Fool 100 Index ETF 0.50%
  • YieldMax Universe Fund Of Opt Inc ETF 1.28%
  • Weighted costs total (per year) 0.68%

Portfolio costs are relatively moderate, with a total expense ratio of 0.68%. The YieldMax Universe Fund Of Opt Inc ETF has the highest individual cost at 1.28%, while others like the iShares US Small Cap Value Factor ETF are more cost-efficient at 0.2%. Keeping costs low is crucial, as high fees can erode returns over time. Regularly reviewing and optimizing fund choices based on cost-efficiency can enhance net returns. Consider reallocating funds from high-cost to lower-cost options without compromising on performance. This cost-conscious approach supports maximizing portfolio returns while maintaining a balanced investment strategy.

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