A well-diversified portfolio with a strong focus on North American and Asian Pacific equities

Report created on Jul 29, 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 is structured around four main ETFs, emphasizing equity investments across North America, the Asia Pacific, and a broad global exposure through an all-equity ETF. The allocation is heavily weighted towards equities, with a 40% stake in a global equity ETF, and the remainder split evenly across specific regional ETFs. This composition reflects a strategic emphasis on diversification across geographies and sectors, aligning with a balanced risk profile. The absence of bond or alternative asset classes, however, indicates a higher risk tolerance, given the portfolio's complete equity exposure.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.81%, with a notable maximum drawdown of -29.72%. These figures suggest a strong performance trend, albeit with significant volatility, as evidenced by the drawdown. The days that contributed most to the returns highlight the portfolio's susceptibility to short-term market movements. This performance, while impressive, underscores the importance of understanding the inherent risks associated with equity-focused investments.

Projection Info

The Monte Carlo simulation, based on 1,000 scenarios, forecasts a wide range of outcomes, from a low 5th percentile increase of 73.1% to a median 50th percentile growth of 415.7%. The high count of simulations with positive returns (994 out of 1,000) and an annualized return of 13.39% suggest optimism for future growth. However, it's crucial to remember that such projections are hypothetical and subject to the limitations of past data, which may not accurately predict future market movements.

Asset classes Info

  • US Equity
    38%
  • Stocks
    32%

The portfolio's asset class distribution is exclusively in equities, divided between US Equity and general Equity, with no allocation to cash or other asset types. This concentration in equities aligns with a growth-oriented strategy but also entails higher volatility and risk. The absence of fixed income or alternative investments limits the portfolio's ability to hedge against market downturns, suggesting an aggressive stance towards capital appreciation.

Sectors Info

  • Financials
    23%
  • Technology
    19%
  • Industrials
    13%
  • Consumer Discretionary
    9%
  • Energy
    7%
  • Basic Materials
    7%
  • Health Care
    6%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocations within the portfolio are broadly diversified, with the highest weightings in Financial Services, Technology, and Industrials. This sectoral spread is conducive to capturing growth across different economic cycles, though the significant exposure to Technology and Financial Services sectors may increase sensitivity to interest rate changes and sector-specific risks. The diversification across other sectors like Consumer Cyclicals, Energy, and Basic Materials, however, helps mitigate this risk to some extent.

Regions Info

  • North America
    70%
  • Japan
    14%
  • Asia Developed
    5%
  • Europe Developed
    4%
  • Australasia
    4%
  • Asia Emerging
    2%

Geographically, the portfolio is heavily weighted towards North America (70%), with significant exposure to Japan (14%) and other developed markets in Asia and Europe. This geographic distribution offers a balanced mix of stability from developed markets and growth potential from Asia Pacific economies. However, the minimal exposure to emerging markets and other regions might limit opportunities for higher growth rates available in these areas.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    32%
  • Mid-cap
    18%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a strong leaning towards Mega and Big cap stocks (76% combined), with lesser allocations to Medium, Small, and Micro caps. This focus on larger companies is indicative of a strategy prioritizing stability and lower volatility. However, the lesser emphasis on smaller caps could mean missing out on higher growth potential these companies often present.

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, while robust in its diversification and historical performance, could potentially be optimized further for risk vs. return efficiency. Exploring the Efficient Frontier could reveal opportunities to adjust allocations for an improved risk-return ratio. This optimization process, however, is based on historical data and should be approached with an understanding of its limitations.

Dividends Info

  • Vanguard FTSE Developed Asia Pacific All Cap Index ETF 1.50%
  • Vanguard FTSE Canada All Cap 1.90%
  • Vanguard All-Equity ETF Portfolio 1.40%
  • Vanguard S&P 500 Index ETF 0.70%
  • Weighted yield (per year) 1.38%

The dividend yields across the ETFs contribute to the portfolio's total yield of 1.38%, offering a modest income stream in addition to potential capital gains. While not the primary focus, these dividends can provide a buffer during market volatility, contributing to the portfolio's overall return.

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