Balanced and broadly diversified portfolio with a strong focus on US equities and technology

Report created on Jul 8, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, with a significant portion allocated to the Vanguard S&P 500 ETF, making it the backbone of the portfolio. The inclusion of the Schwab U.S. Dividend Equity ETF and the Schwab U.S. Large-Cap Growth ETF further emphasizes a focus on large-cap US stocks, while the Vanguard Total International Stock Index Fund ETF Shares introduce some international exposure. The overall composition suggests a strategy that leans heavily on established, large-cap companies, primarily within the US market, with a smaller portion dedicated to global diversification.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 13.57% and a maximum drawdown of -33.39%, the portfolio has demonstrated resilience and growth over time. The days contributing to 90% of returns being concentrated in just 30 days highlight the impact of significant market movements on performance. Comparing this to benchmark indices would be essential for context, but these figures suggest a robust performance, albeit with periods of significant volatility.

Projection Info

Monte Carlo simulations, utilizing 1,000 runs, project a wide range of outcomes with a median increase of 386.0%, indicating potential for significant growth. However, the presence of a 5th percentile outcome at 64.5% warns of the risks involved. These projections, while useful for planning, are based on historical data and cannot guarantee future results. They serve as a reminder of the inherent uncertainties in investing.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, offering no asset class diversification. This concentration in one asset class enhances exposure to market volatility and sector-specific risks. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer against stock market downturns, potentially reducing overall portfolio volatility without necessarily compromising long-term returns.

Sectors Info

  • Technology
    29%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    9%
  • Industrials
    9%
  • Consumer Staples
    8%
  • Energy
    6%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation highlights a strong emphasis on technology, financial services, and consumer cyclicals, which may reflect current market trends and growth opportunities. However, this concentration increases susceptibility to sector-specific risks. Broadening the sectoral coverage could mitigate this risk, ensuring that the portfolio is not overly dependent on the performance of a limited number of sectors.

Regions Info

  • North America
    87%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

The geographical allocation is heavily skewed towards North America, with minimal exposure to emerging markets and other developed regions. This concentration benefits from the stability and growth of the US economy but limits potential gains from diversification into faster-growing or less correlated markets. Increasing exposure to underrepresented regions could enhance returns and reduce overall risk.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    36%
  • Mid-cap
    19%
  • Small-cap
    2%

The focus on mega and big-cap stocks underscores a preference for stability and proven performance. While these companies typically offer less volatility, the relatively smaller allocation to medium, small, and micro-caps limits potential for outsized growth from smaller companies. A slight increase in exposure to smaller market caps could introduce higher growth potential, albeit with increased risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Vanguard S&P 500 ETF indicates redundancy, reducing the diversification benefits of holding both. Identifying and eliminating overlapping holdings can enhance portfolio efficiency by reducing unnecessary exposure to similar assets, thus potentially improving risk-adjusted returns.

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 portfolio's current alignment suggests room for optimization, particularly in reducing asset overlap and enhancing diversification across asset classes, sectors, and geographies. Employing the Efficient Frontier could help in achieving the optimal risk-return trade-off by adjusting the asset allocation without necessarily increasing the portfolio's overall risk profile.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.74%

The diversified dividend yields, ranging from 0.40% to 3.80%, contribute to the portfolio's total yield of 1.74%. This income stream is a crucial aspect of total returns, especially in volatile or bear markets. Reevaluating the balance between growth and income-generating assets could ensure that the portfolio aligns with the investor's income needs and growth objectives.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With an overall expense ratio of 0.04%, the portfolio benefits from low costs, which is commendable. Lower costs directly translate to higher net returns over time. The selection of low-cost ETFs is a strategic choice that helps in maximizing the compounding effect of investments, supporting better long-term performance.

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