Balanced portfolio with a strong focus on tech stocks and gold diversification

Report created on May 28, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is characterized by a significant allocation towards technology through the Invesco NASDAQ 100 ETF, accounting for 40% of the total. The inclusion of the Goldman Sachs Physical Gold ETF and the iShares MSCI World ETF, each at 30%, adds a layer of diversification. This mix suggests a strategy that balances growth potential with the stability offered by gold and international exposure. However, the heavy tilt towards tech stocks may introduce sector-specific risks.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.11% and a maximum drawdown of -26.23%, the portfolio demonstrates robust growth with moderate volatility. The days contributing to 90% of returns highlight the impact of significant market movements on performance. Compared to a balanced benchmark, this performance suggests effective asset allocation, though the drawdown indicates potential risks during market downturns.

Projection Info

Monte Carlo simulations, projecting future performance based on historical data, show a wide range of outcomes, with a median increase of 468.6%. While this method offers valuable insights, it's essential to remember that past performance is not indicative of future results. These projections should be viewed as one of many tools in investment decision-making.

Asset classes Info

  • Stocks
    70%
  • Other
    30%

The portfolio's asset allocation includes 70% in stocks and 30% in "other," primarily gold. This distribution aligns with a balanced growth strategy, leveraging the growth potential of equities while using gold as a hedge against market volatility and inflation. However, the absence of fixed-income assets might limit risk mitigation during market downturns.

Sectors Info

  • Technology
    29%
  • Telecommunications
    9%
  • Consumer Discretionary
    8%
  • Financials
    5%
  • Health Care
    5%
  • Industrials
    5%
  • Consumer Staples
    4%
  • Basic Materials
    1%
  • Utilities
    1%
  • Energy
    1%
  • Real Estate
    1%

A 29% allocation to technology indicates a growth-oriented strategy but also introduces sector-specific risks, particularly from market volatility. The diversification across other sectors, such as communication services and consumer cyclicals, is commendable but remains overshadowed by the tech concentration. Broadening sector exposure could enhance risk management and return stability.

Regions Info

  • North America
    61%
  • Europe Developed
    6%
  • Japan
    2%
  • Australasia
    1%

The geographic allocation is heavily skewed towards North America (61%), with minimal exposure to other regions. This concentration benefits from the robust performance of the U.S. market but lacks significant international diversification, potentially missing out on growth opportunities in emerging markets and other developed economies.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    24%
  • Mid-cap
    9%

The focus on mega and big-cap companies (60% combined) suggests a preference for stability and established performance. While this can offer lower volatility, incorporating medium or small-cap stocks could enhance growth prospects and diversification, albeit with increased 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 allocation suggests an attempt to optimize the portfolio along the Efficient Frontier, aiming for the best possible risk-return ratio. While the heavy allocation to tech stocks and gold indicates a specific strategic choice, there might be room for further optimization by diversifying across more asset classes and sectors to achieve a more efficient risk-return trade-off.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.60%
  • iShares MSCI World ETF 1.40%
  • Weighted yield (per year) 0.66%

The overall dividend yield of 0.66% reflects a moderate income component, which could complement growth strategies in a balanced portfolio. While not the focus, dividends contribute to total returns and provide a cash flow, which can be reinvested or used as income.

Ongoing product costs Info

  • Goldman Sachs Physical Gold ETF 0.18%
  • Invesco NASDAQ 100 ETF 0.15%
  • iShares MSCI World ETF 0.24%
  • Weighted costs total (per year) 0.19%

With a total expense ratio (TER) of 0.19%, the portfolio is cost-efficient, enhancing long-term net returns. Lower costs are crucial for maximizing investment growth, especially in a balanced portfolio where the aim is to achieve a moderate risk-return profile.

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