A cautious yet growth-oriented portfolio with a heavy gold and S&P 500 ETF allocation

Report created on Oct 16, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is distinctly characterized by its heavy allocation towards the iShares® Gold Trust Micro and the Vanguard S&P 500 ETF, comprising 55.68% and 44.32% respectively. This unique composition reflects a strategy that seeks to balance the growth potential of the S&P 500 with the traditional safety net of gold. However, this allocation results in a low diversification score, indicating a concentration risk that could impact the portfolio's resilience against market volatility.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 17.75%, with a maximum drawdown of -17.83%. These metrics suggest that while the portfolio has experienced significant growth, it has also faced substantial short-term losses. The performance, heavily influenced by the S&P 500's recent bullish run and gold's defensive nature, underscores the portfolio's sensitivity to market movements and the need for a balanced approach to risk management.

Projection Info

Monte Carlo simulations, based on 1,000 scenarios, forecast a wide range of outcomes with a median increase of 916%. This suggests potential for substantial growth but also highlights the uncertainty inherent in relying on historical data for future predictions. It's important to recognize that these projections offer insights rather than guarantees, emphasizing the need for regular portfolio reviews to adapt to changing market conditions.

Asset classes Info

  • Stocks
    44%

The portfolio's asset allocation is heavily skewed towards stocks (44%) and gold (56%), with a notable absence of other asset classes. This concentration in just two asset classes limits the portfolio's ability to mitigate risks through diversification. Expanding into additional asset classes could enhance the portfolio's stability and potential for long-term growth.

Sectors Info

  • Technology
    16%
  • Financials
    6%
  • Consumer Discretionary
    5%
  • Telecommunications
    4%
  • Health Care
    4%
  • Industrials
    3%
  • Consumer Staples
    2%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector-wise, the portfolio's exposure aligns with the S&P 500's distribution, favoring technology, financial services, and consumer cyclicals. While this sectoral allocation benefits from the growth dynamics of these industries, it also inherits their volatility. Diversifying into more defensive sectors or increasing allocations to underrepresented sectors could provide a buffer during market downturns.

Regions Info

  • North America
    44%

Geographically, the portfolio's investments are concentrated in North America (44%), reflecting a home bias that may limit exposure to global growth opportunities. Diversifying into developed European markets or emerging markets could reduce geographic concentration risk and potentially enhance returns.

Market capitalization Info

  • Mega-cap
    21%
  • Large-cap
    15%
  • Mid-cap
    8%

The market capitalization breakdown shows a tilt towards mega (21%) and big (15%) cap stocks, with medium caps making up 8%. This composition favors stability and liquidity but may miss out on the higher growth potential of smaller companies. Considering a more balanced allocation across market caps could improve the risk-return profile.

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 demonstrates a cautious approach to risk, balancing the growth potential of equities with the defensive nature of gold. However, exploring the Efficient Frontier could reveal opportunities to achieve a better risk-return ratio by adjusting the allocation between these assets. This optimization process seeks to maximize returns for a given level of risk, potentially enhancing the portfolio's performance.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.53%

The portfolio's dividend yield from the Vanguard S&P 500 ETF contributes 1.20% to the overall yield of 0.53%. While not the primary focus, dividends offer a source of passive income and a cushion against market fluctuations. Considering investments with higher dividend yields or diversifying into dividend-focused funds could enhance income generation without significantly increasing risk.

Ongoing product costs Info

  • iShares® Gold Trust Micro 0.09%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.06%

With a total expense ratio (TER) of 0.06%, the portfolio benefits from low costs, positively impacting long-term returns. Keeping costs low is crucial for maximizing investment efficiency, especially in a low-diversity portfolio where the performance of a few assets significantly impacts overall returns.

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