This portfolio has only about 1.4 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced and diversified portfolio with a strong focus on stocks and international exposure

Report created on May 28, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in stocks (95%) with a significant allocation to the Schwab S&P 500 Index Fund (50%) and a diversified mix of international and emerging market ETFs. The inclusion of the Fidelity Wise Origin Bitcoin Trust (5%) introduces an alternative investment component, adding a layer of diversification beyond traditional asset classes. The overall composition suggests a balanced approach, aiming to capture growth through broad market exposure while mitigating risk with geographic and sectoral diversification.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 20.78% and a maximum drawdown of -16.83%, the portfolio has demonstrated strong performance with relatively moderate fluctuations. The days contributing to 90% of returns being limited to 9.0 indicates that the portfolio's gains are concentrated in specific periods, highlighting the importance of staying invested during market highs. This performance, compared to a balanced risk profile, suggests an effective strategy but warrants a review of risk management practices to ensure alignment with the investor's risk tolerance.

Projection Info

Utilizing Monte Carlo simulations, which project future returns based on historical data, this portfolio shows a wide range of outcomes, with the 50th percentile suggesting a 3,516.2% return. While simulations offer valuable insights, it's crucial to remember that they are based on past performance, which is not a reliable indicator of future results. These projections should be used as one of several tools in making informed investment decisions, considering the inherent uncertainties in market behavior.

Asset classes Info

  • Stocks
    95%
  • Other
    5%
  • Cash
    1%

The asset class distribution, with a heavy emphasis on stocks, aligns with the portfolio's growth-oriented strategy. The minimal allocation to 'Other' and the absence of bonds reflect a higher risk tolerance, focusing on capital appreciation over income. This allocation is appropriate for investors with a longer time horizon and the ability to withstand market volatility. However, it's important to periodically reassess this mix, especially as the investor's financial goals or market conditions evolve.

Sectors Info

  • Technology
    22%
  • Financials
    18%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Consumer Discretionary
    5%
  • Consumer Discretionary
    5%
  • Energy
    5%
  • Basic Materials
    4%
  • Real Estate
    3%
  • Utilities
    3%

The sectoral allocation shows a strong preference for Technology and Financial Services, making up 40% of the portfolio. This concentration in high-growth sectors can enhance returns but may also increase volatility. The presence of Industrials, Healthcare, and a spread across other sectors suggests an attempt to balance this with more stable investments. Monitoring sector performance and rebalancing as needed can help manage risk and capitalize on sectoral shifts.

Regions Info

  • North America
    61%
  • Europe Developed
    11%
  • Asia Emerging
    8%
  • Japan
    4%
  • Asia Developed
    4%
  • Latin America
    2%
  • Africa/Middle East
    1%
  • Australasia
    1%

Geographic diversification is evident, with a significant portion allocated to North America (61%) and meaningful exposure to developed European markets and emerging Asian economies. This global spread can help mitigate region-specific risks and tap into growth opportunities worldwide. However, the portfolio may benefit from increased exposure to underrepresented regions, such as Africa/Middle East and Australasia, to further enhance diversification.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    28%
  • Mid-cap
    15%
  • Small-cap
    6%
  • Micro-cap
    2%

The market capitalization breakdown, favoring mega (42%) and big (28%) cap stocks, suggests a bias towards more established, less volatile companies. This is a common strategy for balancing growth and stability. Including medium, small, and micro-cap stocks (23% combined) introduces potential for higher growth but also higher volatility. Regularly reviewing this allocation can ensure it remains aligned with the investor's risk tolerance and market outlook.

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 has a good balance of risk and return, but there's potential for optimization. According to the Efficient Frontier analysis, an expected return of 39.63% could be achieved with a similar risk level, suggesting room for improvement. This optimization process involves adjusting asset allocations to achieve the best possible risk-return ratio. It's important to consider that this theoretical model assumes historical returns and volatilities will persist, which may not always hold true.

Dividends Info

  • Schwab Fundamental Emerging Markets Large Company Index ETF 4.40%
  • Fidelity Small-Mid Factor 1.40%
  • Schwab International Equity ETF 2.80%
  • Schwab S&P 500 Index Fund 1.20%
  • Weighted yield (per year) 1.96%

The dividend yield of the portfolio averages 1.96%, with the highest yield coming from the Schwab Fundamental Emerging Markets Large Company Index ETF (4.40%). This yield contributes to the portfolio's total return, offering a source of income in addition to capital gains. Given the portfolio's growth orientation, the dividend yield is a secondary consideration, but it's valuable for income or as a reinvestment source to compound growth.

Ongoing product costs Info

  • Schwab Fundamental Emerging Markets Large Company Index ETF 0.39%
  • Fidelity Small-Mid Factor 0.15%
  • Schwab International Equity ETF 0.06%
  • Schwab S&P 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.10%

The total expense ratio (TER) of 0.10% is impressively low, maximizing the potential for net returns. This cost efficiency is particularly noteworthy given the portfolio's diversification and exposure to specialized ETFs. Keeping costs low is crucial for long-term investment success, as even small differences in fees can have a significant impact on wealth accumulation over time.

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