Balanced portfolio with strong focus on stocks and significant international exposure
Report created on Aug 7, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
SW SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES
SWTSX - US8085097561 70.00% -
SW SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES
SWISX - US8085098304 30.00%
This portfolio is predominantly invested in stocks, with a 70% allocation in a total stock market index fund and a 30% allocation in an international index fund. Such a composition demonstrates a balanced approach, leveraging the growth potential of the stock market while incorporating international diversification to mitigate risk. The selection of index funds indicates a preference for broad market exposure and cost efficiency, aligning well with a balanced risk profile that seeks steady growth.
Growth
Historically, this portfolio has shown a compound annual growth rate (CAGR) of 11.86%, with a maximum drawdown of -34.42%. These figures suggest resilience and a capacity for recovery, important characteristics for a balanced portfolio. However, it's crucial to remember that past performance is not indicative of future results. The days contributing to 90% of returns being limited to 26 indicates that market timing can be less significant than long-term holding in achieving portfolio growth.
Projection
Using Monte Carlo simulations, which project potential outcomes based on historical data, this portfolio has a median projected growth of 278.1% at the 50th percentile. While these simulations provide valuable insights, they are inherently uncertain and should be viewed as one of many tools in investment decision-making. It's important for investors to consider these projections in conjunction with other factors such as market conditions and personal financial goals.
Asset classes
- Stocks 99%
The portfolio's asset allocation is heavily weighted towards stocks (99%), with minimal cash holdings. This allocation is typical for a balanced growth-oriented portfolio, aiming for higher returns through equity investments. However, the absence of bonds or other asset classes may limit the portfolio's ability to hedge against stock market volatility. Consider diversifying into bonds or other assets for more stability.
Sectors
- Technology 25%
- Financials 17%
- Industrials 12%
- Health Care 10%
- Consumer Discretionary 10%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 3%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
The sectoral allocation is well-diversified across technology, financial services, industrials, healthcare, and consumer cyclicals, among others. This diversification helps in spreading risk and capitalizing on growth across different sectors of the economy. The heavy weighting towards technology and financial services mirrors broader market trends but also underscores the need to monitor sector-specific risks.
Regions
- North America 70%
- Europe Developed 20%
- Japan 7%
- Australasia 2%
- Asia Developed 1%
With 70% of assets in North America and a 30% international spread, the portfolio achieves a balance between domestic and global exposure. This geographic diversification is beneficial, reducing the risk associated with any single market. However, the absence of emerging markets might limit exposure to high-growth regions. Consider increasing allocations to emerging markets for potential growth opportunities.
Market capitalization
- Mega-cap 44%
- Large-cap 32%
- Mid-cap 16%
- Small-cap 4%
- Micro-cap 1%
The portfolio's market capitalization breakdown—44% mega, 32% big, 16% medium, 4% small, and 1% micro—indicates a conservative tilt towards larger, more established companies. This bias towards larger companies may contribute to stability but could also limit growth potential from smaller, more dynamic firms. A slight adjustment towards smaller caps could enhance growth prospects.
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.
Considering the Efficient Frontier, the portfolio appears well-positioned for a balanced risk-return profile. However, there's always room for optimization. Adjusting allocations between existing assets could potentially enhance the risk-return ratio without significantly altering the portfolio's overall risk profile. This fine-tuning should be based on current market conditions and future outlooks.
Dividends
- SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES 2.80%
- SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 1.10%
- Weighted yield (per year) 1.61%
The portfolio generates a total yield of 1.61%, with the international fund contributing a higher dividend yield of 2.80% compared to 1.10% from the total stock market fund. This dividend income can provide a steady cash flow, which is beneficial for income-seeking investors. It also offers potential for reinvestment, contributing to the portfolio's growth.
Ongoing product costs
- SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES 0.06%
- SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 0.03%
- Weighted costs total (per year) 0.04%
The portfolio benefits from low costs, with total expense ratios (TER) averaging 0.04%. Low costs are crucial for long-term investment success, as they directly enhance net returns. This cost efficiency is a strong aspect of the portfolio, ensuring that more of the investment returns are retained by the investor.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey