Balanced and moderately diversified portfolio with a strong focus on North American equities

Report created on Jun 9, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

Your portfolio is composed entirely of stocks, with a significant emphasis on North American companies, showcasing a balanced mix across several sectors. This structure reflects a strategy that leans towards companies with stable dividends and growth potential. The equal weighting across diverse industries such as Consumer Defensive, Technology, and Industrials suggests an attempt at risk mitigation through sector diversification. However, the absence of investments in bonds, real estate, or alternative asset classes indicates an opportunity to enhance diversification further.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.79%, with a maximum drawdown of -31.79%. These figures highlight the portfolio's resilience and ability to recover from market downturns, largely attributed to its diversified sector exposure and focus on blue-chip companies. However, the days contributing to 90% of returns being concentrated in 37.0 days suggest volatility and the importance of being invested during key market movements.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, indicate a wide range of potential returns for your portfolio. With a median projected increase of 496.3% and 956 out of 1,000 simulations showing positive returns, the projections are generally optimistic. However, it's crucial to remember that these simulations are based on past performance, which is not a reliable indicator of future results. They offer a glimpse into possible futures, not guarantees.

Asset classes Info

  • Stocks
    100%

Your portfolio's exclusive investment in stocks, while beneficial for growth, exposes you to higher volatility compared to portfolios that include bonds or other asset classes. Diversifying across different asset classes can reduce risk and smooth out returns over time, especially during stock market downturns. Considering the addition of bonds or real estate investment trusts (REITs) could provide income and reduce overall portfolio volatility.

Sectors Info

  • Consumer Staples
    25%
  • Technology
    25%
  • Industrials
    21%
  • Consumer Discretionary
    17%
  • Financials
    8%
  • Health Care
    4%

The sector allocation within your portfolio is well thought out, with a balanced exposure to Consumer Defensive, Technology, Industrials, Consumer Cyclicals, Financial Services, and Healthcare. This mix helps mitigate sector-specific risks, though the heavy weighting towards Consumer Defensive and Technology sectors could expose the portfolio to sector-specific downturns. Broadening exposure to underrepresented sectors like Healthcare could enhance resilience.

Regions Info

  • North America
    96%
  • Europe Developed
    4%

With 96% of your portfolio invested in North America and a minimal exposure to Europe, your geographic diversification is limited. This concentration in North American markets, while benefiting from the region's economic stability, leaves the portfolio potentially vulnerable to regional economic downturns. Increasing exposure to developed European markets or emerging markets could offer additional growth opportunities and risk mitigation.

Market capitalization Info

  • Large-cap
    59%
  • Mega-cap
    42%

The emphasis on Big and Mega-cap companies, constituting 59% and 42% of your portfolio, respectively, aligns with a strategy favoring stability and steady dividends. While such companies generally offer less volatility, the potential for high growth may be limited compared to smaller-cap companies. Considering a small allocation to mid or small-cap stocks could introduce growth potential, 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.

Considering the Efficient Frontier, your portfolio shows a balance between risk and return but might not be fully optimized. By adjusting allocations within your current assets or diversifying into new asset classes, you could potentially achieve a better risk-return ratio. Exploring adjustments that move the portfolio closer to the Efficient Frontier could enhance long-term outcomes without necessarily increasing risk.

Dividends Info

  • Apple Inc 0.50%
  • Accenture plc 1.80%
  • Automatic Data Processing Inc 1.80%
  • Broadcom Inc 0.90%
  • Bank of America Corp 1.70%
  • Best Buy Co. Inc 5.20%
  • Caterpillar Inc 1.60%
  • The Clorox Company 3.80%
  • Cisco Systems Inc 2.40%
  • Deere & Company 1.20%
  • FedEx Corporation 2.50%
  • Home Depot Inc 1.90%
  • The Coca-Cola Company 2.70%
  • Mastercard Inc 0.50%
  • McDonald’s Corporation 1.70%
  • Mondelez International Inc 2.80%
  • 3M Company 1.50%
  • Altria Group 6.80%
  • Merck & Company Inc 4.00%
  • Microsoft Corporation 0.50%
  • PepsiCo Inc 3.10%
  • Procter & Gamble Company 2.50%
  • Starbucks Corporation 2.60%
  • United Parcel Service Inc 6.60%
  • Weighted yield (per year) 2.53%

Your portfolio's average dividend yield of 2.53% contributes to its overall return, providing a steady income stream. This yield is balanced across various sectors, with standout contributions from Altria Group and United Parcel Service. While dividends are an essential component of total returns, focusing solely on dividend yield might overlook growth opportunities. Balancing high-yield investments with growth-oriented stocks could optimize returns.

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