Balanced and diversified portfolio with a strong focus on equity across major markets
Report created on Jul 20, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
SC Schwab U.S. Large-Cap ETF
SCHX - US8085242019 45.00% -
SC Schwab International Equity ETF
SCHF - US8085248057 30.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 15.00% -
SC Schwab U.S. Small-Cap ETF
SCHA - US8085246077 10.00%
This portfolio is heavily weighted towards equities, with a 45% allocation in U.S. Large-Cap ETFs, 30% in International Equity ETFs, 15% in U.S. Dividend Equity ETFs, and 10% in U.S. Small-Cap ETFs. It's classified as broadly diversified with a balanced risk profile, indicating a strategic mix aimed at mitigating risk while pursuing growth. The focus on large-cap and dividend-paying stocks suggests a preference for stability and income, complemented by the growth potential of international and small-cap exposures.
Growth
Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.70%, with a maximum drawdown of -34.64%. The days contributing to 90% of returns number 26, highlighting the impact of significant market movements on performance. These figures underline the portfolio's resilience and potential for recovery, demonstrating a well-structured approach to capturing equity market gains while navigating volatility.
Projection
Using Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 299.3% return, with a 67th percentile at 437.0%, indicating strong growth potential. However, it's crucial to remember that simulations have limitations and cannot predict future market conditions with certainty. They are best used as a tool for understanding potential risk and return dynamics.
Asset classes
- Stocks 100%
The portfolio is entirely allocated to stocks, with no direct investment in bonds, cash, or other asset classes. This singular focus on equities enhances growth prospects but also exposes the portfolio to market fluctuations. Diversifying across different asset classes could provide a buffer against equity market downturns, potentially smoothing out returns over time.
Sectors
- Technology 22%
- Financials 17%
- Industrials 13%
- Health Care 10%
- Consumer Discretionary 10%
- Consumer Staples 8%
- Telecommunications 7%
- Energy 6%
- Basic Materials 3%
- Real Estate 2%
- Utilities 2%
Sector allocation covers a broad spectrum, with technology (22%) and financial services (17%) constituting the largest exposures, followed by industrials and healthcare. This sectoral spread is indicative of a portfolio aiming for balanced exposure across key areas of the economy. However, the heavy weighting in technology and financial services could introduce sector-specific risks, warranting periodic review to ensure alignment with broader market trends.
Regions
- North America 73%
- Europe Developed 16%
- Japan 6%
- Asia Developed 2%
- Australasia 2%
Geographically, the portfolio is predominantly invested in North America (73%), with significant exposure to developed markets in Europe and Japan. This distribution suggests a conservative approach, favoring established markets over emerging ones. While this may reduce volatility, incorporating a modest allocation to emerging markets could enhance growth prospects and diversification.
Market capitalization
- Mega-cap 35%
- Large-cap 34%
- Mid-cap 19%
- Small-cap 8%
- Micro-cap 3%
The mix of mega (35%), big (34%), medium (19%), small (8%), and micro (3%) cap stocks shows a deliberate strategy to balance risk and return. Larger companies typically offer stability and dividends, while smaller companies provide growth potential. This diversified market cap exposure is a strength, supporting the portfolio's balanced risk classification.
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 allocation appears well-positioned on the Efficient Frontier, suggesting an optimal balance between risk and return given the existing assets. However, the dynamic nature of markets means that continuous reassessment is necessary to maintain this efficiency. Regularly evaluating the portfolio against the Efficient Frontier can help identify opportunities for further optimization.
Dividends
- Schwab U.S. Small-Cap ETF 1.50%
- Schwab U.S. Dividend Equity ETF 3.80%
- Schwab International Equity ETF 2.60%
- Schwab U.S. Large-Cap ETF 1.20%
- Weighted yield (per year) 2.04%
The portfolio's dividend yield stands at 2.04%, with individual ETF yields ranging from 1.20% to 3.80%. This emphasis on dividend-paying equities contributes to the portfolio's income generation, complementing capital appreciation as a source of total return. For investors seeking both growth and income, this dividend strategy aligns well with their objectives.
Ongoing product costs
- Schwab U.S. Small-Cap ETF 0.04%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab International Equity ETF 0.06%
- Schwab U.S. Large-Cap ETF 0.03%
- Weighted costs total (per year) 0.04%
With total portfolio costs averaging 0.04%, the portfolio benefits from low expense ratios across its ETF holdings. This efficient cost structure enhances net returns over time, demonstrating the advantage of selecting low-cost investment vehicles. Investors should continue prioritizing cost efficiency when considering future adjustments or additions to the portfolio.
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