A balanced portfolio leaning heavily on US equities with a minor bond inclusion for stability

Report created on May 27, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is predominantly composed of U.S. equities, with a substantial 80% allocation to the Schwab U.S. Broad Market ETF, complemented by a 15% investment in the Schwab International Equity ETF, and a conservative 5% in the Schwab U.S. Aggregate Bond ETF. This structure indicates a strong emphasis on stock market investments, with a moderate tilt towards international diversification and a minimal bond cushion to mitigate volatility. The asset allocation aligns with a balanced risk profile, aiming for growth while maintaining a buffer against market downturns through its bond holdings.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.80%, with a significant maximum drawdown of -33.91%. These figures suggest a resilient performance over time, albeit with periods of substantial volatility. The days contributing to 90% of returns being limited to 26 indicates that a few specific periods have driven the majority of the portfolio's growth, underlining the importance of staying invested through market cycles to capture key growth spurts.

Projection Info

Monte Carlo simulations, utilizing 1,000 hypothetical scenarios, project a wide range of outcomes with a median increase of 158.6% in portfolio value. The 5th percentile outcome at a modest 2.8% growth rate underscores potential downside risks, while the 67th percentile suggests a more optimistic scenario. This analysis underscores the inherent uncertainty in predicting future market movements and the value of maintaining a diversified portfolio to navigate various market conditions.

Asset classes Info

  • Stocks
    95%
  • Bonds
    5%

The portfolio's asset class distribution, with 95% in stocks and 5% in bonds, positions it for significant growth potential but also exposes it to higher volatility. This high equity concentration is typical for investors with a longer-term horizon and a higher risk tolerance. However, the minimal bond allocation provides some level of income and stability, particularly during stock market downturns.

Sectors Info

  • Technology
    26%
  • Financials
    15%
  • Health Care
    10%
  • Industrials
    10%
  • Consumer Discretionary
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    2%

Sector analysis reveals a heavy weighting towards technology and financial services, followed by healthcare, industrials, and consumer cyclicals. This sector distribution mirrors the broader market composition but may expose the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting technology and financial stocks. Diversifying across more sectors could mitigate such risks.

Regions Info

  • North America
    81%
  • Europe Developed
    9%
  • Japan
    3%
  • Asia Developed
    1%
  • Australasia
    1%

Geographically, the portfolio is heavily skewed towards North America, with minimal exposure to developed and emerging markets outside of the U.S. While this focus capitalizes on the U.S. market's historical strength, it may limit potential gains from global economic growth. Increasing international diversification could enhance returns and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    29%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown shows a preference for mega and large-cap stocks, which typically offer stability and steady growth. However, the limited exposure to small and micro-cap stocks may restrict potential high-growth opportunities in emerging companies. Considering a slight increase in small to micro-cap allocations could offer higher growth prospects, albeit with added 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, the portfolio could potentially be optimized for a better risk-return ratio by adjusting asset allocations. While it demonstrates a balanced approach, exploring different allocations could further enhance returns or reduce volatility. This might involve diversifying more significantly across asset classes or rebalancing sector and geographic exposures to align more closely with the investor's risk tolerance and investment horizon.

Dividends Info

  • Schwab U.S. Broad Market ETF 1.30%
  • Schwab International Equity ETF 2.80%
  • Schwab U.S. Aggregate Bond ETF 4.10%
  • Weighted yield (per year) 1.66%

Dividend yields from the ETFs contribute to the portfolio's overall return, with a total yield of 1.66%. While the bond ETF offers a higher yield, the portfolio's heavy equity weighting drives the average yield down. For investors seeking income, rebalancing towards assets with higher dividend yields or incorporating dividend-focused investments could provide additional income streams.

Ongoing product costs Info

  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Aggregate Bond ETF 0.03%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from low costs, with a Total Expense Ratio (TER) of 0.03% across its holdings. This efficiency supports better long-term performance by minimizing the drag on returns. Maintaining low investment costs is crucial for maximizing net returns, especially in a low-yield environment.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey