Balanced portfolio with strong focus on technology and high-dividend assets

Report created on Aug 3, 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 characterized by a significant allocation to ETFs, especially those tracking the S&P 500, international stocks, and the technology sector, alongside a notable position in real estate through common stock. The diversification across major asset classes is primarily within equities, with a minor allocation to cash. The heavy weighting towards ETFs suggests a preference for broad market exposure and ease of management, while the inclusion of a real estate stock indicates a tilt towards income-generating assets.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 16.53% and a maximum drawdown of -17.24%, the portfolio demonstrates strong past performance with a relatively moderate level of risk. The days contributing to 90% of returns being limited suggests significant gains were concentrated in short periods, indicating potential volatility. Comparing this performance to benchmarks would be crucial for context, but these figures suggest robust growth potential balanced with risk management strategies.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with the median simulation suggesting substantial growth. However, it's important to note that such projections, while useful for planning, are based on historical data and cannot predict future market conditions accurately. The high number of simulations with positive returns underscores the portfolio's resilience but should be balanced with an understanding of the inherent uncertainties in financial markets.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's near-exclusive investment in stocks, with a minor cash holding, reflects a growth-oriented strategy. While this asset class allocation supports potential high returns, it also exposes the portfolio to market volatility. Diversifying into other asset classes, such as bonds or commodities, could provide additional risk mitigation and income streams, especially during market downturns where equities might underperform.

Sectors Info

  • Technology
    30%
  • Financials
    12%
  • Real Estate
    12%
  • Consumer Discretionary
    10%
  • Telecommunications
    9%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    2%

The sectoral allocation reveals a heavy emphasis on technology, financial services, and real estate. This concentration in tech and real estate, sectors known for their growth and income potential, respectively, aligns with a strategy seeking balanced growth and dividends. However, the significant tech exposure may increase volatility, suggesting a review of sector balances could enhance risk-adjusted returns.

Regions Info

  • North America
    76%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 76% of assets in North America and a diversified international exposure, the portfolio is well-positioned to capture growth in developed markets while having a stake in emerging and other developed regions. This geographic distribution supports diversification benefits but leans heavily on the performance of the US market. Increasing allocations to underrepresented regions may offer additional diversification and access to growth opportunities outside the US.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    39%
  • Mid-cap
    14%
  • Small-cap
    1%

The focus on mega and big cap stocks, making up 84% of the portfolio, suggests a preference for stability and established companies. While this can offer lower volatility and steady growth, the limited exposure to medium, small, and micro-cap stocks may restrict potential high-growth opportunities. Rebalancing to include more small and medium-cap stocks could enhance growth prospects and diversification.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Growth Index Fund ETF Shares
    Invesco QQQ Trust
    High correlation

The high correlation among the Vanguard S&P 500 ETF, Vanguard Growth Index Fund ETF Shares, and Invesco QQQ Trust indicates overlapping exposures, particularly in large-cap and technology stocks. This redundancy may limit the portfolio's diversification benefits. Reducing overlap by reallocating funds from highly correlated assets to underrepresented sectors or asset classes could improve portfolio efficiency.

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 using the Efficient Frontier could further enhance its risk-return profile. The current asset allocation shows room for improvement, particularly in reducing overlap among correlated assets. By reallocating investments to decrease redundancy and potentially increase exposure to underrepresented asset classes or sectors, the portfolio could achieve a more efficient balance of risk and return.

Dividends Info

  • Realty Income Corporation 5.20%
  • Invesco QQQ Trust 0.50%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 12.20%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.94%

The portfolio's dividend yield is bolstered by specific high-income ETFs and real estate investments, contributing to a total yield of 2.94%. This focus on income-generating assets is a prudent strategy for investors seeking steady cash flow. However, balancing yield-focused investments with growth-oriented assets is essential to ensure long-term capital appreciation alongside income.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.12%

The portfolio's total expense ratio (TER) of 0.12% is impressively low, enhancing its long-term return potential by minimizing cost drag. The varied TERs across the ETFs highlight the importance of cost consideration in asset selection. Maintaining low costs while ensuring effective diversification and exposure to desired sectors and regions is commendable.

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