A balanced and highly diversified portfolio with a strong focus on global equities

Report created on Jun 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio showcases a significant emphasis on global market exposure, primarily through ETFs focusing on emerging markets, developed markets outside North America, and specific allocations to the Canadian and US markets. The substantial weight in emerging markets (56.50%) combined with developed international markets (25.50%) suggests a strategy aimed at capturing growth across a wide geographic spectrum. This is complemented by targeted exposures to the North American market, including a 10% allocation to Canadian equities and an 8% allocation to US equities, providing a blend of stability and growth potential within the portfolio.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 8.05% and a maximum drawdown of -27.57%, the portfolio has demonstrated resilience and growth over time. The days contributing to 90% of the returns indicate that a small number of significant positive movements have driven performance. This performance, while solid, should be considered in the context of the portfolio's risk classification and diversification, which have been key factors in achieving these results.

Projection Info

Utilizing Monte Carlo simulations, which forecast potential outcomes by varying historical data, the portfolio's forward-looking projections show a wide range of possible performances. With the majority of simulations (982 out of 1,000) yielding positive returns and an annualized return across all simulations at 10.43%, the future outlook appears promising. However, it's crucial to remember that these projections are based on past data, which cannot guarantee future results.

Asset classes Info

  • Stocks
    10%
  • US Equity
    9%

The portfolio's asset allocation leans heavily towards equities, with a notable absence of fixed income or alternative investments. This allocation underscores the portfolio's growth orientation but also highlights a higher risk profile, given equities' volatility. Diversifying across asset classes could provide a buffer against market fluctuations and potentially smooth out returns over time.

Sectors Info

  • Financials
    23%
  • Technology
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    8%
  • Basic Materials
    7%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Energy
    5%
  • Utilities
    3%
  • Real Estate
    2%

Sectoral allocation within the portfolio is diverse, with significant holdings in financial services, technology, and industrials, which are sectors often associated with growth but also with higher volatility. The presence of defensive sectors like healthcare and consumer defensive offers some balance, potentially mitigating risk during market downturns.

Regions Info

  • Asia Emerging
    29%
  • North America
    19%
  • Asia Developed
    17%
  • Europe Developed
    16%
  • Japan
    6%
  • Africa/Middle East
    6%
  • Latin America
    4%
  • Australasia
    2%
  • Europe Emerging
    1%

The geographic distribution of assets underscores a strong commitment to global diversification, with significant exposure to emerging markets and developed markets outside of North America. This global approach can tap into growth opportunities worldwide but also introduces geopolitical and currency risks that need to be managed.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    3%

The market capitalization breakdown, with a focus on mega and big cap stocks (79% combined), suggests a preference for stability and lower volatility associated with larger, more established companies. However, the relatively smaller allocation to medium, small, and micro caps indicates potential missed opportunities for higher growth, albeit with increased risk.

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 current portfolio's expected return is below the optimal portfolio's projected return of 14.61% at a similar risk level. This indicates potential for improvement in the risk-return profile through strategic adjustments. Rebalancing to include assets with different risk-return characteristics or adjusting the weightings of current holdings could move the portfolio closer to the Efficient Frontier, optimizing performance for the given level of risk.

Dividends Info

  • Vanguard FTSE Canada All Cap 2.60%
  • Vanguard S&P 500 Index ETF 1.00%
  • iShares Core MSCI Emerging Markets IMI Index ETF 1.90%
  • iShares Core MSCI EAFE IMI 2.40%
  • Weighted yield (per year) 2.03%

The dividend yield across the portfolio averages to 2.03%, contributing to the total return. While not the primary focus, these yields offer a steady income stream, which can be particularly valuable during periods of market volatility or as part of a more conservative investment strategy.

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