Balanced and broadly diversified portfolio with a strong emphasis on stocks across major markets

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a heavy emphasis on equities, with a 50% allocation in a major S&P 500 ETF, complemented by international, emerging markets, mid-cap, and total stock market ETFs. Each of these positions contributes to a wide-ranging exposure across various geographies and market capitalizations, though it's heavily skewed towards stocks. While this composition suggests a balanced approach to risk, the singular focus on equities indicates a higher risk tolerance, aligning with the portfolio's risk classification.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 12.79%, suggests it has navigated market conditions well. The maximum drawdown of -34.52% is significant but not unusual for stock-heavy portfolios. It's important to note that while past performance is a useful indicator, it does not guarantee future returns. The days contributing most to returns highlight the volatility and potential for rapid growth inherent in equities.

Projection Info

Monte Carlo simulations project a wide range of outcomes, emphasizing the uncertainty and risk involved in stock investing. The majority of simulations (977 out of 1000) predict positive returns, which is encouraging. However, the significant spread between the 5th and 67th percentiles underscores the importance of being prepared for volatility. These projections, while based on historical data, are speculative and should be used as one of many tools in decision-making.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, which is suitable for investors with a higher risk tolerance but may not be appropriate for those seeking regular income or nearing retirement. Diversification across asset classes, such as including bonds or real estate, could provide more stability and reduce overall portfolio volatility.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Utilities
    3%
  • Basic Materials
    3%
  • Real Estate
    3%

The sectoral distribution is well-diversified, covering technology, financial services, consumer cyclicals, and industrials as the leading sectors. This diversification helps mitigate sector-specific risks, but the heavy weighting in technology could expose the portfolio to higher volatility, given the sector's rapid growth and frequent price fluctuations.

Regions Info

  • North America
    76%
  • Europe Developed
    8%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Japan
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Australasia
    1%

Geographically, the portfolio is heavily weighted towards North America (76%), with smaller exposures to developed Europe, emerging Asia, and other regions. While this provides a strong foundation in stable markets, increasing exposure to emerging and developed markets outside of North America could enhance growth potential and diversification.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    31%
  • Mid-cap
    27%
  • Small-cap
    2%

The mix of mega, big, and medium-cap stocks provides a balanced exposure to companies of different sizes, combining the stability of large companies with the growth potential of mid-sized ones. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities that these segments can offer.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Mid-Cap Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation among the S&P 500, mid-cap, and total stock market ETFs suggests redundancy in the portfolio, limiting its diversification benefits. Diversifying into assets with lower correlations, such as bonds or real estate, could enhance risk management and potentially improve returns.

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 for the Efficient Frontier suggests a need to address the overlapping holdings among the highly correlated ETFs. By reallocating these investments into less correlated assets, the portfolio could achieve a more efficient risk-return profile. This optimization approach focuses on adjusting current holdings rather than expanding into new asset classes.

Dividends Info

  • Goldman Sachs ActiveBeta® International Equity ETF 2.90%
  • iShares Core MSCI Emerging Markets ETF 3.10%
  • Vanguard Mid-Cap Index Fund ETF Shares 1.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.69%

The dividend yields, while contributing to the portfolio's total returns, are relatively modest. For investors seeking income, reallocating towards assets with higher dividend yields or incorporating income-focused investments could provide a more substantial income stream.

Ongoing product costs Info

  • Goldman Sachs ActiveBeta® International Equity ETF 0.25%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • Vanguard Mid-Cap Index Fund ETF Shares 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) is impressively low at 0.07%, which is beneficial for long-term growth as costs can significantly erode returns over time. Maintaining a focus on low-cost investments will continue to support better net performance.

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