A balanced portfolio with a focus on dividend yield and moderate geographic diversification

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor seeking stable income through dividends with moderate risk tolerance. It is ideal for those with a medium to long-term investment horizon, aiming to balance growth and income. The portfolio's emphasis on dividend yield and geographic diversification aligns with goals of capital preservation and steady returns. While it provides exposure to various sectors and regions, the investor should be comfortable with potential fluctuations in market value.

Positions

  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    15.00%
  • Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares
    VTIP - US9220208055
    12.00%
  • iShares International Select Dividend ETF
    IDV - US4642884484
    10.00%
  • Sprott Physical Gold
    PHYS - CA85207H1047
    10.00%
  • FlexShares Morningstar Global Upstream Natural Resources Index Fund
    GUNR - US33939L4077
    8.00%
  • Brookfield Infrastructure Partners LP
    BIP - BMG162521014
    6.00%
  • Farmland Partners Inc
    FPI - US31154R1095
    6.00%
  • Realty Income Corp
    O - US7561091049
    6.00%
  • Sprott Physical Silver
    PSLV - CA85207K1075
    6.00%
  • Vanguard Dividend Appreciation Index Fund ETF Shares
    VIG - US9219088443
    6.00%
  • Vanguard Utilities Index Fund ETF Shares
    VPU - US92204A8760
    6.00%
  • T. Rowe Price Group Inc
    TROW - US74144T1088
    5.00%
  • Riot Blockchain Inc
    RIOT - US7672921050
    4.00%

The portfolio is moderately diversified with a strong emphasis on dividend-focused ETFs and stocks. It holds 72% in equities, 12% in bonds, and a small allocation to cash. The balanced risk classification is evident with a 4 out of 7 risk score. Compared to benchmarks, this portfolio leans more towards dividend-producing assets, which aligns well with income generation goals. For further diversification, consider adding assets that are less correlated with the existing holdings. This can enhance risk management and potentially improve long-term returns.

Growth Info

Historically, the portfolio has delivered a compound annual growth rate (CAGR) of 11.16%, which is commendable. However, it has experienced a maximum drawdown of -36.70%, indicating significant risk during downturns. This performance reflects a strong upside potential but also highlights vulnerability in volatile markets. When compared to benchmarks, the returns are competitive, yet the drawdown suggests a need for improved risk management. Consider integrating more stable assets or adjusting allocations to mitigate potential losses during market downturns.

Projection Info

Monte Carlo simulations, which use historical data to predict future outcomes, project a wide range of potential returns. The portfolio's 1,000 simulations show a 5th percentile outcome of -74.7% and a 67th percentile of 382.3%. While the median scenario is a promising 154.2% return, the variability underscores the inherent uncertainty in projections. Understanding that these simulations are not guarantees but rather possibilities, consider regular reviews and adjustments to align with evolving market conditions and personal financial goals.

Asset classes Info

  • Stocks
    72%
  • Bonds
    12%
  • Unknown
    6%
  • Cash
    1%

The portfolio is concentrated in equities (72%), with a modest bond allocation (12%) and minimal cash. This equity-heavy composition suggests a focus on growth and income through dividends. Compared to typical balanced benchmarks, the bond allocation is lower, which may increase volatility. To enhance diversification, consider adding more fixed-income assets or alternative investments. This can provide stability and reduce overall portfolio risk, especially during periods of equity market stress.

Sectors Info

  • Financials
    16%
  • Utilities
    14%
  • Real Estate
    12%
  • Unknown
    6%
  • Energy
    5%
  • Basic Materials
    5%
  • Consumer Staples
    5%
  • Health Care
    4%
  • Technology
    3%
  • Industrials
    3%
  • Consumer Discretionary
    3%
  • Telecommunications
    2%

The sector allocation reveals significant exposure to financial services (16%), utilities (14%), and real estate (12%). This composition suggests a focus on sectors known for stable dividends. However, the portfolio may be vulnerable to sector-specific risks, such as regulatory changes in utilities or interest rate fluctuations affecting real estate. Balancing sector exposure by incorporating more cyclical or growth-oriented sectors could provide better resilience against sector-specific downturns.

Regions Info

  • North America
    53%
  • Unknown
    12%
  • Europe Developed
    9%
  • Australasia
    1%
  • Asia Developed
    1%
  • Asia Emerging
    1%
  • Africa/Middle East
    1%
  • Latin America
    0%

With 53% exposure to North America, the portfolio is moderately diversified geographically. It has limited exposure to Europe (9%) and minimal allocations to other regions. Compared to global benchmarks, this portfolio is underweight in emerging markets, which could limit growth potential. To enhance geographic diversification, consider increasing exposure to regions with higher growth prospects, such as Asia or Latin America. This can help mitigate regional risks and capture global economic opportunities.

Market capitalization Info

  • Large-cap
    38%
  • Mid-cap
    18%
  • Small-cap
    8%
  • Mega-cap
    7%
  • Unknown
    6%
  • Micro-cap
    0%

The portfolio's market capitalization is skewed towards large-cap stocks, with big and mega-cap holdings comprising 45%. This focus on larger companies provides stability but may limit growth potential compared to small-cap stocks. The 8% allocation to small-cap stocks offers some exposure to higher growth opportunities. To achieve a better balance, consider increasing allocations in mid and small-cap stocks, which can enhance growth potential and improve diversification across different company sizes.

Dividends Info

  • Brookfield Infrastructure Partners LP 4.30%
  • Farmland Partners Inc 13.30%
  • FlexShares Morningstar Global Upstream Natural Resources Index Fund 2.90%
  • iShares International Select Dividend ETF 5.00%
  • Realty Income Corp 5.50%
  • Schwab U.S. Dividend Equity ETF 4.10%
  • T. Rowe Price Group Inc 5.80%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.90%
  • Vanguard Utilities Index Fund ETF Shares 2.30%
  • Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares 2.60%
  • Weighted yield (per year) 3.59%

The portfolio's focus on dividend-paying assets results in a total yield of 3.59%, providing a steady income stream. This yield is attractive for income-focused investors, especially in low-interest-rate environments. However, relying heavily on dividend yield can expose the portfolio to risks if companies cut dividends during economic downturns. To maintain a balanced approach, consider blending growth-oriented assets with dividend payers, ensuring both income and capital appreciation.

Ongoing product costs Info

  • FlexShares Morningstar Global Upstream Natural Resources Index Fund 0.46%
  • iShares International Select Dividend ETF 0.51%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard Utilities Index Fund ETF Shares 0.10%
  • Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) is 0.11%, which is impressively low. This cost efficiency supports better long-term returns by minimizing the drag on performance. The low costs align well with best practices in portfolio management, ensuring that more of the investment returns are retained. Regularly reviewing and managing costs, such as by considering lower-cost funds or negotiating fees, can further enhance net returns without compromising on investment quality.

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.

The portfolio can be optimized using the Efficient Frontier, which focuses on achieving the best possible risk-return ratio given the current assets. By adjusting asset allocations, you can potentially enhance returns without increasing risk. This approach helps in identifying the most efficient mix of assets to achieve desired outcomes. It's important to note that optimization is based on historical data and assumptions, so regular reviews are essential to adapt to changing market conditions.

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