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

Report created on Aug 27, 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 primarily composed of ETFs with a heavy allocation towards the technology sector and US equities, representing 40% and 81% respectively. This indicates a strategic emphasis on growth-oriented investments within the tech industry and a confidence in the US market. The inclusion of both the Vanguard S&P 500 ETF and the Vanguard Total International Stock Index Fund ETF shows a balanced approach to geographic diversification, though with a clear preference for domestic over international exposure.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 14.89%, with a maximum drawdown of -27.09%. This performance suggests resilience during market downturns and an ability to capitalize on growth trends, particularly in the technology sector. The days contributing to 90% of returns being limited to 20 indicates that the portfolio's growth is concentrated in specific periods of strong market gains, highlighting the importance of staying invested during volatile phases.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with a median increase of 551.9% over the simulation period. This suggests a strong potential for significant growth, with a high likelihood (99.5%) of positive returns. However, it's important to remember that these projections are based on historical data and assumptions, and actual future performance could vary, especially given the portfolio's heavy tech sector concentration.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is almost entirely in stocks (99%), with a minimal cash reserve (1%). This asset class distribution underscores a growth-focused investment strategy with a higher risk tolerance. While this can offer higher returns, it also exposes the portfolio to market volatility. Diversifying across different asset classes could provide a buffer during market downturns.

Sectors Info

  • Technology
    40%
  • Financials
    11%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Industrials
    8%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is heavily weighted towards technology (40%), indicating a bullish outlook on tech industry growth. However, this concentration also increases susceptibility to sector-specific risks, such as regulatory changes or technological disruptions. Expanding into underrepresented sectors could mitigate this risk while still allowing for substantial growth opportunities.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution shows a strong bias towards North America (81%), with limited exposure to emerging markets and other developed regions. This concentration in developed markets, particularly the US, may offer stability but could limit potential gains from emerging market growth. Increasing exposure to underrepresented regions could enhance diversification and access to high-growth opportunities.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    34%
  • Mid-cap
    17%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio favors larger companies, with 44% in mega-cap and 34% in large-cap stocks. This skew towards larger, more established companies may offer stability but can also limit growth potential compared to smaller, more agile firms. Incorporating a broader mix of market capitalizations could balance the pursuit of growth with risk management.

Redundant positions Info

  • Vanguard Information Technology Index Fund ETF Shares
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between the Vanguard Information Technology Index Fund ETF Shares and the Invesco NASDAQ 100 ETF indicates redundancy, as they likely hold many of the same stocks. This redundancy doesn't contribute to diversification and may unnecessarily concentrate risk. Reducing overlap by choosing between these two or diversifying into less correlated assets could enhance portfolio efficiency.

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 allocation suggests an opportunity for optimization by addressing the high correlation between certain assets. Moving towards a more diversified set of investments could improve the risk-return profile. Considering the Efficient Frontier, reallocating investments to reduce overlap and introduce assets with complementary risk-return characteristics could enhance portfolio efficiency.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.52%

The portfolio's average dividend yield of 1.52% contributes to its total return, with the Schwab U.S. Dividend Equity ETF providing a significant boost at 3.70%. While not the primary focus, dividends offer a steady income stream and can provide a buffer during market volatility. Considering investments with higher dividend yields could further enhance income without significantly increasing risk.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This low cost structure is commendable and supports long-term growth by reducing the amount of returns eroded by expenses. Maintaining focus on low-cost investments will continue to be beneficial for maximizing net returns.

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