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

Report created on Jul 28, 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 structured around major equity ETFs, with a significant allocation to the S&P 500 (40%), international stocks (25%), the NASDAQ 100 (20%), and emerging markets (15%). This composition indicates a strategic emphasis on diversification across both developed and emerging markets, leveraging the growth potential of large-cap companies globally. Comparing this to a typical balanced portfolio, the emphasis here is more on equity exposure, which aligns with a growth-oriented investment strategy while maintaining a balanced risk profile through geographical and sectoral diversification.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.10%, with a maximum drawdown of -27.61%. The days contributing to 90% of returns number just 18, highlighting the impact of significant market movements on portfolio performance. When benchmarked against a standard balanced fund, which typically has lower volatility and possibly a lower return, this performance suggests a robust growth trajectory, albeit with periods of higher volatility reflective of its equity-heavy composition.

Projection Info

Using Monte Carlo simulations, which estimate future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 347.4% return, with a 5th percentile at a modest 48.5% increase, indicating potential downside risk. While these projections offer valuable insights, it's crucial to remember that they are based on past market behavior, which is not a guaranteed predictor of future performance. The high percentage of simulations with positive returns (989 out of 1,000) does, however, provide a degree of confidence in the portfolio's potential for growth.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is predominantly in stocks (99%), with a minimal cash reserve (1%). This heavy tilt towards equities is characteristic of a growth-oriented investment strategy, aiming for higher returns at the expense of increased volatility. Diversification across asset classes is limited, which could be a point of consideration for enhancing risk management through the inclusion of fixed-income securities or alternative investments to buffer against market downturns.

Sectors Info

  • Technology
    30%
  • Financials
    15%
  • Consumer Discretionary
    12%
  • Telecommunications
    10%
  • Industrials
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sectoral allocation is led by technology (30%), followed by financial services (15%) and consumer cyclicals (12%). This sector distribution reflects a focus on industries with high growth potential but also exposes the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting technology and finance. Diversifying further across sectors could help mitigate these risks while still capturing growth opportunities in other areas.

Regions Info

  • North America
    61%
  • Asia Emerging
    13%
  • Europe Developed
    10%
  • Asia Developed
    6%
  • Japan
    4%
  • Africa/Middle East
    3%
  • Latin America
    2%
  • Australasia
    1%

Geographically, the portfolio is heavily weighted towards North America (61%), with significant exposure to Asia Emerging (13%) and Europe Developed (10%). This distribution supports diversification and the potential for capturing growth in both established and emerging markets. However, the heavy North American focus may introduce regional concentration risk, suggesting the potential benefit of increasing allocations to underrepresented areas for broader global exposure.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    2%

The portfolio's market capitalization exposure is predominantly in mega (48%) and big (32%) cap stocks, with medium (16%), small (2%), and micro (0%) cap stocks making up the remainder. This skew towards larger companies may contribute to stability and lower volatility but could limit the portfolio's exposure to the potentially higher growth rates of smaller companies. Balancing market cap exposure could enhance diversification and growth potential.

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 it is positioned near the Efficient Frontier, indicating an optimized risk-return ratio based on its existing assets. However, continuous review and rebalancing are essential to maintain this optimization, especially considering market fluctuations and changing investment objectives. Adjustments may include rebalancing asset class weights, diversifying sectoral exposure, or exploring opportunities in underrepresented geographic regions.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.68%

The portfolio's dividend yield stands at 1.68%, with the highest yields from the Vanguard FTSE Emerging Markets Index Fund ETF Shares (2.70%) and the Vanguard Total International Stock Index Fund ETF Shares (2.80%). While not the primary focus, dividends contribute to total return and provide a passive income stream, which can be particularly beneficial in market downturns or for investors seeking income in addition to capital appreciation.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • 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 efficiently managed in terms of costs, which is crucial for maximizing long-term returns. Lower costs ensure that a greater portion of investment returns is retained by the investor, highlighting the portfolio's cost-effective structure in comparison to higher-cost investment options.

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