A balanced yet single-focused investment portfolio with a strong tilt towards major US equities

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

This portfolio is predominantly invested in major US equities, with a significant allocation towards ETFs that track large-cap indices and a notable position in Berkshire Hathaway. The composition is heavily skewed towards stocks (93%), with a small allocation in cash equivalents (7%) and no direct investment in bonds. This single-focused approach towards equities, particularly within the US market, suggests a strategy aiming for growth while maintaining a balanced risk profile. However, the lack of international diversification and minimal exposure to bonds could limit risk mitigation opportunities.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 14.22% and a maximum drawdown of -21.35%, the portfolio has demonstrated strong performance. The days contributing to 90% of returns indicate significant gains were achieved on relatively few days, emphasizing the impact of market volatility. While past performance is robust, it's crucial to remember it does not guarantee future results. The portfolio's resilience during downturns and its ability to capture market upswings are key factors in its historical success.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values. With 994 out of 1,000 simulations showing positive returns, the future looks promising, though it's essential to understand these projections are subject to market conditions. The simulations provide a useful tool for assessing potential risk and return, but they have limitations and cannot predict unforeseen market shifts.

Asset classes Info

  • Stocks
    93%
  • Cash
    7%

The portfolio's asset allocation is heavily weighted towards stocks, with a small cash position to potentially cover short-term needs or opportunities. This allocation supports a growth-oriented strategy but may increase volatility. Diversifying across more asset classes, including bonds or real assets, could provide better risk-adjusted returns, especially in turbulent markets.

Sectors Info

  • Financials
    26%
  • Technology
    24%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    7%
  • Consumer Staples
    7%
  • Energy
    6%
  • Industrials
    5%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral distribution is concentrated in Financial Services and Technology, making the portfolio susceptible to sector-specific risks. While these sectors have historically driven market performance, diversification across a broader range of sectors could mitigate risk and smooth out returns over time. The underrepresentation in sectors like Real Estate and Utilities, typically considered defensive, further emphasizes the growth focus.

Regions Info

  • North America
    92%
  • Europe Developed
    1%

With 92% of assets allocated to North America, the portfolio's geographic exposure is highly concentrated. This concentration in developed markets, particularly the US, aligns with the portfolio's balanced risk profile but limits global diversification benefits. Expanding into developed Europe or emerging markets could offer growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    31%
  • Mid-cap
    15%
  • Small-cap
    2%

The focus on Mega and Big cap stocks aligns with the portfolio's balanced risk approach, offering stability and potential for steady growth. However, the limited exposure to Medium, Small, and Micro cap stocks restricts the portfolio's ability to capture high-growth opportunities in smaller companies. Considering a more balanced market cap distribution could enhance returns while managing risk.

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 current portfolio's risk-return profile can be optimized. An efficient portfolio, as suggested by the Efficient Frontier analysis, could achieve an expected return of 3.04% with the same level of risk. This indicates room for improvement in asset allocation to enhance returns without increasing risk. Rebalancing towards this optimal allocation could provide better risk-adjusted returns.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • iShares® 0-3 Month Treasury Bond ETF 4.10%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.65%

The portfolio's dividend yield contributes to its total return, with a notable yield from the Schwab U.S. Dividend Equity ETF and the iShares® 0-3 Month Treasury Bond ETF. These dividends can provide a steady income stream, which is beneficial in both up and down markets. Reinvesting dividends or strategically using them for income needs can enhance portfolio growth over time.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.06%

The portfolio's overall expense ratio is impressively low, averaging 0.06%, which is advantageous for long-term growth. Lower costs translate directly to higher net returns, a principle that is well applied here. Continuously monitoring and minimizing investment costs remains a crucial aspect of maximizing returns.

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