Balanced and broadly diversified portfolio with a strong focus on technology and North American stocks

Report created on May 28, 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 composed of four ETFs that cover a wide range of sectors and geographies, with a significant emphasis on the US market. The largest allocation is in a total stock market ETF, ensuring broad exposure to the US economy. The inclusion of an international stock ETF adds global diversification, while the NASDAQ 100 ETF introduces a tech-heavy tilt. The dividend equity ETF offers income potential, rounding out the portfolio's balanced approach between growth and income.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.93%, with a maximum drawdown of -26.46%. This performance suggests resilience during market downturns and robust growth in favorable conditions. The days contributing most to returns highlight the impact of significant market movements on the portfolio's performance. This historical data underscores the importance of staying invested during volatile periods to capture recovery and growth phases.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, show a wide range of outcomes but a strong tendency towards positive returns. With 984 out of 1,000 simulations predicting gains, the portfolio appears well-positioned for future growth. However, it's essential to remember that these projections are not guarantees and should be used as one of many tools in assessing potential investment outcomes.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely allocated to stocks, with a negligible cash position. This asset class distribution aligns with the portfolio's balanced risk profile, aiming for growth while accepting moderate volatility. Investors should consider whether the minimal cash holdings align with their liquidity needs and risk tolerance.

Sectors Info

  • Technology
    29%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation reveals a significant emphasis on technology, followed by financial services and consumer cyclicals. This distribution reflects the portfolio's growth orientation but also introduces sector-specific risks, particularly from the tech sector's volatility. Diversifying across additional sectors could help mitigate these risks.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America, with modest exposure to developed Europe and emerging Asian markets. This concentration in North American stocks, while beneficial during periods of strong US market performance, may limit global diversification benefits and expose the portfolio to regional economic downturns.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    33%
  • Mid-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for mega and big-cap stocks, which typically offer stability and lower volatility compared to smaller companies. This allocation supports the portfolio's balanced risk approach but may limit exposure to the higher growth potential of smaller firms.

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 appears to strike a balance between risk and return, aligning with the principles of the Efficient Frontier. However, continuous assessment is necessary to ensure that the portfolio remains optimized as market conditions change. Adjustments may be needed to maintain the desired risk-return profile.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.60%
  • Schwab U.S. Dividend Equity ETF 4.00%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.75%

The dividend yield across the portfolio averages 1.75%, with the highest yield from the dividend equity ETF. This income component complements the portfolio's growth strategy, providing cash flow that can be reinvested or used as income. However, the focus should remain on total return, balancing income with capital appreciation potential.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

With an average Total Expense Ratio (TER) of 0.06%, the portfolio is cost-efficient, which is crucial for long-term performance. Lower costs mean more of the portfolio's returns are kept by the investor, a key factor in compounding growth over time.

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