Balanced portfolio with a strong emphasis on technology and North American stocks

Report created on Aug 5, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs that track major US stock indices and sectors, with a significant portion allocated to technology. While this composition leverages the growth potential of the US market and the tech sector, it also introduces a concentration risk. Given the portfolio's balanced risk profile, this concentration aligns with seeking higher returns but needs careful monitoring to manage potential volatility.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 14.35%, with a maximum drawdown of -27.78%. This performance indicates a strong recovery capability from market downturns, likely benefiting from the growth orientation of its holdings. However, investors should be cautious, as past performance is not a reliable indicator of future results. The concentrated exposure to high-growth sectors may contribute to both the high returns and the significant drawdown observed.

Projection Info

Using Monte Carlo simulations, the portfolio shows a wide range of potential outcomes, with a median increase of 435.2%. This method, while useful for understanding possible future scenarios, relies on historical data and cannot predict unforeseen market changes. Investors should consider these projections as part of a broader decision-making framework, recognizing the limitations of relying solely on past trends.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks, with a negligible cash holding. This asset class distribution supports a growth-focused strategy but lacks diversification across other asset classes like bonds or real estate, which could provide income or reduce volatility. Introducing additional asset classes could enhance the portfolio's resilience against market fluctuations.

Sectors Info

  • Technology
    35%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

The technology sector dominates the portfolio, followed by financial services and consumer cyclicals. This sectoral allocation reflects a growth-oriented investment strategy, capitalizing on innovation and market trends. However, the heavy tech focus may increase susceptibility to sector-specific risks. Diversifying into sectors with different economic sensitivities could mitigate this risk.

Regions Info

  • North America
    86%
  • Europe Developed
    5%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Africa/Middle East
    1%
  • Australasia
    1%
  • Latin America
    1%

With 86% of assets in North America, the portfolio has a strong home bias. While this may have benefited from the region's robust market performance, it also limits exposure to potential growth in other regions. Expanding into more diverse geographic areas, especially emerging markets, could offer growth opportunities and risk diversification.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    1%

The emphasis on mega and big-cap stocks underlines the portfolio's preference for established, large-scale companies, likely contributing to its historical performance. While these companies tend to be more stable, incorporating a broader mix of medium, small, and micro-cap stocks could enhance growth potential and diversification.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    iShares Core S&P 500 ETF
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation among several ETFs, especially those tracking large-cap US stocks, suggests redundancy in the portfolio, limiting diversification benefits. Streamlining these holdings by removing overlapping assets could improve the portfolio's efficiency without sacrificing performance potential.

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.

Optimizing the portfolio along the Efficient Frontier could improve its risk-return profile. Currently, the portfolio could benefit from reducing overlap in highly correlated assets. By reallocating these funds into less correlated or different asset classes, the portfolio might achieve a more efficient distribution, potentially offering higher returns for the same level of risk.

Dividends Info

  • iShares Core S&P 500 ETF 1.30%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.25%

The portfolio's average dividend yield of 1.25% contributes to its total return, complementing capital gains with income. While the focus on growth stocks typically comes with lower dividend yields, maintaining a balance with dividend-paying assets can offer a steady income stream and reduce volatility.

Ongoing product costs Info

  • iShares Core S&P 500 ETF 0.03%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.07%

With a Total Expense Ratio (TER) averaging 0.07%, the portfolio benefits from low-cost ETFs, enhancing net returns over time. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact compound growth.

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

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