A balanced and globally diversified portfolio with a strong focus on technology and North American equities

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 broadly diversified, predominantly invested in equities across various sectors and geographies. The allocation is heavily weighted towards North American stocks, with a significant portion in technology. This composition suggests a strategy aiming for growth while maintaining a balance through exposure to a wide range of sectors. The reliance on ETFs for diversification is notable, simplifying portfolio management and reducing the need for frequent rebalancing.

Growth Info

Historically, this portfolio has shown impressive growth, with a Compound Annual Growth Rate (CAGR) of 14.24%. The maximum drawdown indicates a moderate level of risk, consistent with the portfolio's balanced profile. The performance is particularly remarkable considering the limited number of days contributing to the majority of returns, highlighting the impact of significant market movements on portfolio value.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median annualized return of 17.49%, suggesting strong potential for future growth. However, it's important to remember that these projections, while useful for planning, are based on historical data and cannot guarantee future performance. They serve as a tool for understanding potential volatility and assessing risk tolerance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks, with a negligible cash holding. This aligns with a growth-focused strategy but may increase volatility. Diversifying across different asset classes, including fixed income or real estate, could provide additional stability during market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    29%
  • Financials
    15%
  • Consumer Discretionary
    12%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation shows a heavy tilt towards technology, followed by financial services and consumer cyclicals. This composition is reflective of the current market environment, where technology plays a central role in economic growth. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or technological disruptions.

Regions Info

  • North America
    78%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily skewed towards North America, with lesser exposure to developed and emerging markets in Europe and Asia. This concentration benefits from the robust performance of the US market but limits global diversification. Expanding into underrepresented regions could enhance returns and reduce geographical risk.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    29%
  • Mid-cap
    16%
  • Small-cap
    7%
  • Micro-cap
    5%

The market capitalization breakdown shows a preference for mega and big-cap stocks, which are typically less volatile than smaller companies. This is consistent with the portfolio's balanced risk profile. However, the inclusion of small and micro-cap stocks, albeit minimal, introduces growth potential at the cost of higher volatility.

Redundant positions Info

  • Vanguard Total World Stock Index Fund ETF Shares
    SPDR® Portfolio S&P 500 ETF
    High correlation

The high correlation between the Vanguard Total World Stock Index Fund ETF Shares and the SPDR® Portfolio S&P 500 ETF suggests redundancy, limiting the diversification benefits of holding both. Reducing overlap in highly correlated assets can enhance portfolio efficiency by improving the risk-return profile without significantly increasing exposure.

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.

Optimization efforts should focus on reducing the overlap between highly correlated ETFs to enhance diversification. By reallocating funds from redundant positions into underrepresented sectors or geographies, the portfolio can achieve a more efficient risk-return ratio. This approach aligns with the principles of the Efficient Frontier, seeking to maximize returns for a given level of risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco NASDAQ 100 ETF 0.50%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.80%
  • Weighted yield (per year) 1.46%

The portfolio's dividend yield contributes to its total return, offering a mix of growth and income. The variation in yields across ETFs highlights the different income-generating potentials of each holding. While not the primary focus, dividends provide a steady stream of income, which can be reinvested to compound growth.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.10%

The low total expense ratio (TER) of 0.10% is commendable, minimizing the drag on returns. Keeping costs low is crucial for long-term growth, as even small differences in fees can compound into significant impacts over time. This portfolio benefits from cost-effective ETFs, maximizing the investor's return potential.

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