Balanced portfolio with a strong focus on US equities and technology but limited international exposure

Report created on Aug 10, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is predominantly invested in equities, with a 40% allocation to a Vanguard S&P 500 ETF, reflecting a strong bias towards large-cap US stocks. The inclusion of the Invesco QQQ Trust further emphasizes a technology sector tilt, given its 20% portfolio weight. The diversification into precious metals through SPDR® Gold Shares and iShares Silver Trust, each constituting 10% of the portfolio, introduces a non-equity asset class aimed at hedging against market volatility and inflation. The Schwab U.S. Dividend Equity ETF and Vanguard Total International Stock Index Fund ETF Shares, also at 10% each, suggest an attempt at income generation and global exposure, albeit modestly.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.29%, with a significant maximum drawdown of -29.37%. These figures indicate a relatively high return potential but also underscore the risk of substantial value fluctuations. The days contributing to 90% of returns being limited to 38 suggests that the portfolio's performance is heavily reliant on specific, high-impact trading days, which can be a double-edged sword, enhancing returns during bullish markets but also increasing vulnerability during downturns.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data (albeit with limitations, as past performance is not indicative of future results), the portfolio shows a wide range of outcomes. The 50th percentile forecast suggests a potential 396.9% increase, highlighting significant growth potential. However, the broad spread between the 5th and 67th percentiles (42.9% to 596.4%) indicates considerable uncertainty, reflecting the portfolio's inherent risk.

Asset classes Info

  • Stocks
    80%
  • Other
    20%

The asset class distribution, with 80% in stocks and 20% in 'Other' (primarily precious metals), suggests a growth-oriented strategy but with some hedging elements. This allocation may offer a balance between the pursuit of capital appreciation through equities and the protective buffer against market downturns provided by gold and silver. However, the absence of fixed-income investments limits the portfolio's ability to mitigate volatility and reduce risk during market corrections.

Sectors Info

  • Technology
    26%
  • Consumer Discretionary
    9%
  • Financials
    9%
  • Telecommunications
    8%
  • Health Care
    7%
  • Industrials
    7%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

With 26% allocated to technology, the portfolio is well-positioned to benefit from the sector's potential for high growth. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or shifts in consumer preferences. The diversification across other sectors like consumer cyclicals, financial services, and healthcare is commendable but may not fully offset the risks associated with the heavy tech weighting.

Regions Info

  • North America
    70%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

The geographic allocation heavily favors North America (70%), with minimal exposure to developed Europe (4%), Asia Emerging (2%), and Japan (2%). This concentration in the US market may limit the portfolio's ability to capitalize on growth opportunities in emerging markets and diversify geopolitical risks. Expanding international exposure could enhance global diversification and potentially reduce volatility.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    29%
  • Mid-cap
    14%
  • No data
    10%
  • Small-cap
    1%

The focus on mega (35%) and big (29%) cap stocks underscores a preference for established, large-scale companies, likely reflecting a balance between seeking growth and managing risk. Medium cap exposure (14%) introduces potential for higher growth at increased risk, while the minimal allocation to small and micro caps (1% and 0%, respectively) suggests a cautious approach to more speculative investments.

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 expected return is below the optimal portfolio's projected 15.12% return at a similar risk level. This indicates room for improvement in risk-return efficiency, potentially through rebalancing asset allocations or diversifying further across asset classes and geographies. Achieving an efficient frontier requires careful consideration of each asset's contribution to both risk and return, suggesting that a more diversified approach could enhance performance without proportionately increasing risk.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.24%

The dividend yield across the portfolio averages 1.24%, with the Schwab U.S. Dividend Equity ETF offering the highest yield at 3.80%. While dividends contribute to the portfolio's total return, the focus on growth-oriented assets like technology ETFs, which typically have lower yields, suggests that income generation is a secondary consideration. For investors seeking regular income, rebalancing to include higher-yielding assets may be beneficial.

Ongoing product costs Info

  • SPDR® Gold Shares 0.40%
  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • iShares Silver Trust 0.50%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.15%

The portfolio's total expense ratio (TER) of 0.15% is relatively low, enhancing its long-term return potential by minimizing cost drag. The Vanguard S&P 500 ETF's exceptionally low cost of 0.03% is particularly advantageous, given its large portfolio weight. However, the higher costs associated with the precious metals ETFs, particularly the iShares Silver Trust at 0.50%, underscore the importance of monitoring fees, especially in less traditional asset classes.

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