Balanced portfolio with a strong focus on US equities and significant gold exposure

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

Your portfolio is predominantly invested in U.S. equities, with a significant allocation towards the Schwab S&P 500 Index Fund and SCHWAB 1000 INDEX FUND INVESTOR SHARES, making up nearly 70% of your investments. This heavy concentration in large-cap U.S. stocks indicates a preference for stability and growth within the U.S. market. The inclusion of gold-related assets and a bond ETF adds a layer of diversification, albeit limited. However, the portfolio's diversification could be improved by broadening its asset class and sectoral reach, particularly given its single-focused classification.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.66%, with a maximum drawdown of -30.02%. These figures suggest that while the portfolio has experienced significant growth, it has also faced substantial volatility. The days contributing to 90% of returns being concentrated in a small number indicates that much of the portfolio's performance can be attributed to short, sharp market movements, highlighting the importance of being invested during these key periods despite the inherent volatility.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes for your portfolio. While the majority of simulations (944 out of 1,000) predict positive returns, the variation between the 5th and 67th percentiles is significant. This underscores the uncertainty inherent in investing and the importance of maintaining a diversified portfolio to mitigate risk. However, it's crucial to remember that these projections are hypothetical and do not guarantee future results.

Asset classes Info

  • Stocks
    86%
  • Other
    7%
  • Bonds
    7%

Your portfolio's asset allocation leans heavily towards stocks (86%), with a smaller presence in bonds (7%) and gold (7%). This allocation supports growth but may expose you to higher volatility, especially in market downturns. While the inclusion of bonds and gold can provide a hedge against inflation and market corrections, the minimal diversification across asset classes may not fully protect against systemic risks. Increasing your bond allocation or considering alternative asset classes could offer better risk-adjusted returns.

Sectors Info

  • Technology
    25%
  • Financials
    11%
  • Health Care
    9%
  • Consumer Discretionary
    7%
  • Telecommunications
    7%
  • Industrials
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    1%

The sectoral allocation within your portfolio shows a strong tilt towards technology, financial services, and healthcare, which are sectors known for their growth potential. However, this concentration also increases susceptibility to sector-specific risks. Expanding into underrepresented sectors, such as consumer defensive or utilities, could provide more stability during market fluctuations, as these sectors tend to be less volatile during economic downturns.

Regions Info

  • North America
    85%

With 85% of your assets allocated to North America, your portfolio's geographic exposure is highly concentrated. This focus on the U.S. market has historically provided strong returns but also exposes you to regional economic and political risks. Considering the global nature of today's economy, increasing exposure to international markets could offer additional growth opportunities and reduce the impact of domestic market downturns.

Market capitalization Info

  • Large-cap
    33%
  • Mega-cap
    31%
  • Mid-cap
    18%
  • No data
    7%
  • Small-cap
    3%

Your portfolio's market capitalization exposure is skewed towards big and mega-cap stocks, which adds a level of stability and resilience to economic cycles. However, the underrepresentation of small and micro-cap stocks limits potential high-growth opportunities these smaller companies can offer. While they carry higher volatility, small-cap stocks can provide diversification benefits and the potential for significant returns during bull markets.

Redundant positions Info

  • VanEck Gold Miners ETF
    Sprott Gold Miners ETF
    High correlation
  • SCHWAB 1000 INDEX FUND INVESTOR SHARES
    Schwab S&P 500 Index Fund
    High correlation

The high correlation observed between certain assets, particularly within the gold ETFs and between the Schwab S&P 500 Index Fund and SCHWAB 1000 INDEX FUND INVESTOR SHARES, indicates redundancy in your portfolio. These overlapping investments do not contribute to diversification and may increase risk without adding to potential returns. Rebalancing to reduce overlap could enhance the portfolio's efficiency by improving diversification without sacrificing performance.

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.

Considering the portfolio's current composition, optimizing for the Efficient Frontier could involve reducing highly correlated assets to minimize redundancy and enhance diversification. This process aims to achieve the best possible risk-return ratio by adjusting the allocation among the existing assets. While this doesn't guarantee higher returns, it does aim for an optimal balance of risk and reward based on historical performance.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.50%
  • VanEck Gold Miners ETF 0.80%
  • Barrick Gold Corp 2.10%
  • Oppenheimer Gold & Spec Minerals 0.60%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • Sprott Gold Miners ETF 0.60%
  • SCHWAB 1000 INDEX FUND INVESTOR SHARES 1.20%
  • Schwab S&P 500 Index Fund 1.20%
  • Weighted yield (per year) 1.63%

Your portfolio's dividend yield stands at 1.63%, contributing to its total return. Dividend-paying assets, like the Schwab U.S. Dividend Equity ETF, offer a steady income stream and can provide a cushion during market downturns. Considering the overall growth orientation of your portfolio, the current dividend yield strikes a balance between income and growth. Adjusting the mix towards higher dividend-yielding assets could offer more income, albeit potentially at the expense of capital appreciation.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • VanEck Gold Miners ETF 0.51%
  • SPDR® Gold Shares 0.40%
  • Oppenheimer Gold & Spec Minerals 1.10%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Sprott Gold Miners ETF 0.50%
  • SCHWAB 1000 INDEX FUND INVESTOR SHARES 0.05%
  • Schwab S&P 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) is impressively low at 0.08%, which is beneficial for long-term growth as lower costs translate directly into higher returns. The individual asset costs range from 0.02% to 1.10%, with the majority on the lower end, indicating cost-efficient fund selection. Continually monitoring and opting for low-cost options when available can further enhance your portfolio's net performance over time.

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