A balanced yet growth-oriented portfolio with a focus on tech and US markets

Report created on Jul 31, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equity ETFs, particularly those tracking the S&P 500 and technology sectors, making up 70% of the allocation. The inclusion of international bonds, gold, and a dividend-focused ETF diversifies the asset classes, albeit with a strong bias towards stocks. The concentration in large-cap, tech-heavy ETFs suggests a preference for growth but introduces sectoral and market-cap concentration risks. Comparing this to a typical balanced portfolio, there's a notable underrepresentation of fixed income and alternative asset classes, which could provide additional diversification benefits.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.82%, with a significant drawdown of -27.78%. The performance is impressive, likely buoyed by the strong tech sector returns in recent years. However, the notable drawdown highlights the portfolio's vulnerability to market volatility, particularly within the tech sector. This performance, while strong, underscores the importance of understanding the inherent risks and the impact of market cycles on high-growth sectors.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 369.9%, indicating potential for substantial growth. However, the simulations also underscore the risk of significant volatility, as evidenced by the 5th percentile outcome. These projections, while useful for understanding potential variability, are based on historical data and cannot guarantee future performance. They highlight the importance of risk management and periodic portfolio reviews to adapt to changing market conditions.

Asset classes Info

  • Stocks
    80%
  • Other
    10%
  • Bonds
    10%

The portfolio's 80% allocation to stocks, with the remainder split between bonds and gold, positions it for growth while offering some level of diversification through non-correlated assets. The bond allocation, though minimal, provides a buffer against stock market volatility, while gold serves as a hedge against inflation and currency devaluation. However, for a balanced profile, increasing the bond allocation or incorporating other asset classes like real estate or commodities could enhance diversification and reduce overall risk.

Sectors Info

  • Technology
    28%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Financials
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Industrials
    6%
  • Energy
    4%
  • Utilities
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

With a significant emphasis on technology, this portfolio is poised to benefit from sector growth but also faces heightened sector-specific risk. The diversification across other sectors like financial services and healthcare is positive, yet the heavy tech weighting may lead to increased volatility. Balancing the sector allocation by reducing the overweight in technology and increasing exposure to underrepresented sectors could mitigate some of this risk while potentially enhancing long-term returns.

Regions Info

  • North America
    79%
  • Europe Developed
    1%

The geographic allocation is predominantly North American, with minimal exposure to developed Europe and no direct investment in emerging or other developed markets. This concentration increases exposure to US market performance and currency risk. Diversifying geographically by increasing investments in emerging markets or other developed economies could reduce risk and tap into growth opportunities outside the US.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    30%
  • Mid-cap
    14%
  • No data
    10%
  • Small-cap
    1%

The portfolio's focus on mega and big-cap companies aligns with its growth orientation and preference for stability offered by large, established companies. However, this concentration limits exposure to the potential high growth of mid and small-cap stocks. Introducing a more balanced market cap distribution could enhance returns and provide better diversification, reducing the impact of market fluctuations on the portfolio's performance.

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 portfolio's current allocation, optimizing for the Efficient Frontier could involve rebalancing towards a more diversified asset mix, potentially improving the risk-return profile. While the portfolio demonstrates strong growth potential, its risk-adjusted performance could be enhanced by diversifying across more asset classes and sectors, and by adjusting the geographic exposure to include emerging markets and other developed economies.

Dividends Info

  • Vanguard Total International Bond Index Fund ETF Shares 4.30%
  • Invesco QQQ Trust 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.51%

The portfolio's dividend yield contributes to its total return, providing a steady income stream in addition to potential capital gains. The yields from the international bond ETF and the dividend equity ETF enhance the portfolio's income-generating capabilities. However, the overall yield could be optimized by balancing high-yield and growth-oriented investments, ensuring a mix that supports both income and capital appreciation goals.

Ongoing product costs Info

  • Vanguard Total International Bond Index Fund ETF Shares 0.07%
  • SPDR® Gold Shares 0.40%
  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.11%

The portfolio benefits from low overall costs, with a Total Expense Ratio (TER) of 0.11%, which is impressive and supports better net returns over the long term. Lower costs are crucial for enhancing investment returns, especially in a low-interest-rate environment. Continuously monitoring and minimizing investment costs remains a key strategy for maintaining the portfolio's efficiency.

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