Get this analysis for your own portfolio Paste your holdings — the first report is free and takes about a minute. Analyze mine

A balanced portfolio with strong US focus and moderate diversification across sectors and asset classes

Report created on Dec 15, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification
Curious how your own portfolio scores? Same analysis, your holdings. First report free — no card needed. Analyze mine

Positions

This portfolio is composed primarily of ETFs, with a significant 50% allocation to the Vanguard S&P 500 ETF, complemented by smaller allocations in U.S. Small Cap Value, NASDAQ 100, Value Index, and Emerging Markets ETFs. The heavy weighting in the S&P 500 ETF suggests a focus on large-cap U.S. equities, which are typically seen as more stable. This composition provides a mix of growth and value investments, with a slight tilt towards U.S. markets. Investors should consider whether this allocation aligns with their risk tolerance and investment goals, potentially adjusting for greater exposure to international markets or other asset classes to enhance diversification.

Growth Info

Historically, this portfolio has shown a strong compound annual growth rate (CAGR) of 16.3%, indicating robust performance. However, it also experienced a maximum drawdown of -22.87%, which highlights potential volatility. The concentrated days that make up 90% of returns suggest that timing and market conditions significantly impact performance. Investors should be aware that past performance does not guarantee future results, and market conditions can change rapidly. It may be beneficial to periodically review the portfolio's performance against benchmarks to ensure it continues to meet investment objectives.

Projection Info

Monte Carlo simulations project potential future outcomes by analyzing historical data patterns. For this portfolio, simulations indicate a 5th percentile return of 95.52% and a median (50th percentile) return of 586.36%, suggesting a wide range of possible outcomes. While 998 out of 1,000 simulations showed positive returns, it's important to remember that simulations are based on past data and assumptions that may not hold true in the future. Investors should use these projections as one of several tools to guide their expectations and decisions, maintaining a flexible strategy to adapt to market changes.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted towards equities, with 99.54% in stocks and minimal cash and other asset classes. This allocation suggests a high-risk, high-reward strategy, as equities tend to offer greater growth potential but also higher volatility. The lack of fixed income or alternative assets could leave the portfolio exposed during market downturns. Investors might consider diversifying into other asset classes, such as bonds or real estate, to balance risk and potentially smooth out returns, depending on their risk tolerance and investment horizon.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    6%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation shows a notable concentration in Technology (25.91%), followed by Financial Services and Consumer Cyclicals. This concentration can drive growth but also increases vulnerability to sector-specific downturns. A more balanced sector allocation can help mitigate risks associated with any single sector's performance. Investors should evaluate whether the current sector exposure aligns with their market outlook and risk tolerance. Adjusting allocations to underrepresented sectors, such as Utilities or Real Estate, could enhance diversification and stability.

Regions Info

  • North America
    89%
  • Asia Emerging
    6%
  • Asia Developed
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Developed
    1%

Geographic exposure is predominantly in North America (88.96%), with limited allocation to other regions. This heavy concentration in the U.S. market may limit the portfolio's ability to capitalize on growth opportunities in international markets. While the U.S. has been a strong performer historically, diversifying across regions can reduce risk and increase exposure to different economic cycles. Investors could consider increasing allocations to emerging or developed markets outside North America to achieve a more globally diversified portfolio.

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.

Open the Portfolio Builder Reshape your holdings and watch every metric recalculate live. Try it

The Efficient Frontier suggests that the portfolio could potentially be optimized for a better risk-return ratio by adjusting the current asset allocations. Optimization focuses on finding the best possible balance between risk and return using the existing assets. This does not necessarily mean adding new investments but rather redistributing the current holdings to achieve maximum efficiency. Investors should consider using portfolio optimization tools to explore how minor adjustments can improve performance while still aligning with their overall investment strategy.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.50%
  • Invesco NASDAQ 100 ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Value Index Fund ETF Shares 2.30%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.60%
  • Weighted yield (per year) 1.45%

The portfolio's dividend yield is 1.45%, with contributions from various ETFs, including a notable 2.6% from the Vanguard FTSE Emerging Markets ETF. Dividends can provide a steady income stream and contribute to total returns, especially in volatile markets. However, the yield is relatively modest, suggesting a focus on growth rather than income. Investors seeking higher income might consider reallocating to higher-yielding assets or funds. Balancing growth and income can help meet financial goals, particularly for those nearing or in retirement.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) is 0.09%, which is relatively low, indicating cost-efficiency. Low costs are crucial for long-term investment success, as they allow more of the returns to compound over time. However, the Avantis U.S. Small Cap Value ETF has a higher expense ratio of 0.25%, which may impact net returns. Investors should regularly review these costs and consider lower-cost alternatives if available. Keeping expenses in check can significantly enhance the portfolio's long-term performance.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

Compare your holdings

How much do the funds you hold actually overlap with the ones people weigh them against?

AVUV vs SPMO AVDV vs VOO QQQM vs SWPPX DRAM vs QQQM

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