This portfolio has only about 10 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced Portfolio with Broad Diversification and Moderate Risk Exposure

Report created on Jul 24, 2024

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 composed of three main ETFs: iShares MSCI Emerging Markets Small-Cap ETF at 34%, Schwab U.S. Dividend Equity ETF at 33%, and Vanguard Total International Stock Index Fund ETF Shares at 33%. This mix provides a balanced exposure to both domestic and international equities, focusing on dividend-paying U.S. stocks, small-cap emerging markets, and a broad range of international stocks. This composition suggests a strategy aimed at capturing growth from various global markets while maintaining a steady income stream from dividends.

Growth Info

Historically, the portfolio has performed with a Compound Annual Growth Rate (CAGR) of 6.96%, experiencing a maximum drawdown of -35.6%. The drawdown indicates the most significant drop from peak to trough, highlighting the potential volatility. However, the CAGR suggests a reasonable growth rate over time. Notably, 90% of the returns were generated in just 19 days, showing that the portfolio's performance is driven by a few high-return days. This underscores the importance of staying invested to capture these critical days.

Projection Info

Using a Monte Carlo simulation with 1,000 simulations, the portfolio's future performance was projected based on a hypothetical initial investment. The results show a wide range of potential outcomes, with a 5th percentile return of -20.29% and a 50th percentile (median) return of 155.22%. The 67th percentile return is 241.41%, indicating a high potential upside. Overall, 918 out of 1,000 simulations resulted in positive returns, with an annualized return of 8.36%. This suggests a favorable long-term outlook but also highlights the inherent uncertainty and risk.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted in stocks, making up 98.92% of the total allocation. A small portion is held in cash (1.03%), and an even smaller fraction in other investments. The high concentration in equities indicates a growth-oriented strategy, which is suitable for investors with a moderate to high-risk tolerance. However, this also means the portfolio is susceptible to market volatility. Diversifying into other asset classes like bonds could help mitigate some of this risk and provide more stability.

Sectors Info

  • Industrials
    16%
  • Financials
    16%
  • Technology
    14%
  • Consumer Discretionary
    11%
  • Health Care
    11%
  • Consumer Staples
    9%
  • Energy
    7%
  • Basic Materials
    7%
  • Telecommunications
    4%
  • Real Estate
    3%
  • Utilities
    2%

The sector allocation is quite diverse, with significant exposure to Industrials (16.33%), Financial Services (15.82%), and Technology (13.57%). Other sectors like Consumer Cyclicals, Healthcare, and Consumer Defensive also have notable allocations. This broad sector exposure helps in spreading risk across various parts of the economy, reducing the impact of sector-specific downturns. However, some sectors like Utilities and Real Estate have minimal representation, which could be areas to consider for further diversification.

Regions Info

  • North America
    35%
  • Asia Emerging
    20%
  • Asia Developed
    15%
  • Europe Developed
    13%
  • Japan
    5%
  • Africa/Middle East
    4%
  • Latin America
    3%
  • Australasia
    2%
  • Europe Emerging
    2%

Geographically, the portfolio is well-diversified with significant exposure to North America (35.42%), Asia Emerging (19.81%), and Asia Developed (15.20%). Europe Developed and Japan also have meaningful allocations. This global diversification helps in spreading geopolitical and economic risks across different regions. However, there is a relatively low allocation to regions like Latin America and Africa/Middle East, which could offer additional growth opportunities and further risk diversification.

Dividends Info

  • iShares MSCI Emerging Markets Small-Cap ETF 2.40%
  • Schwab U.S. Dividend Equity ETF 3.50%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 2.96%

The portfolio includes the Schwab U.S. Dividend Equity ETF, which focuses on dividend-paying stocks. This provides a steady income stream, which can be particularly beneficial during market downturns. Dividends can also be reinvested to compound returns over time. However, it's essential to monitor the dividend yield and payout ratios to ensure they are sustainable. Consistent dividend payments can help in achieving a more stable and predictable return.

Ongoing product costs Info

  • iShares MSCI Emerging Markets Small-Cap ETF 0.70%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.28%

The total expense ratio (TER) of the portfolio is 0.28%, with individual costs of 0.7% for the iShares MSCI Emerging Markets Small-Cap ETF, 0.06% for the Schwab U.S. Dividend Equity ETF, and 0.08% for the Vanguard Total International Stock Index Fund ETF Shares. These costs are relatively low, which is advantageous as it means more of the returns are retained by the investor. Keeping costs low is crucial for long-term investment success, as high fees can significantly erode returns over time.

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