A balanced and broadly diversified portfolio with a strong focus on technology and US markets

Report created on Jul 28, 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 composed of three ETFs that cover large-cap US equities, technology-focused companies, and international stocks, creating a mix that leans heavily towards the technology sector with a 50% allocation in the Vanguard S&P 500 ETF, 25% in the Invesco NASDAQ 100 ETF, and 25% in the Vanguard Total International Stock Index Fund ETF Shares. The heavy weighting towards US equities and technology indicates a growth-oriented strategy, albeit with significant geographic and sectoral concentration risks.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.54%, with a maximum drawdown of -27.74%. This performance reflects both the growth potential and volatility associated with technology and large-cap stocks. The days contributing to 90% of returns being limited to 19 indicates that a few high-performance days significantly impact overall returns, underscoring the importance of staying invested through market volatility.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values. With 994 out of 1,000 simulations showing positive returns and a median projected increase of 516.1%, there's a strong likelihood of future growth. However, it's important to remember that these projections are not guarantees and depend on past market behavior, which may not repeat in the same way.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This allocation supports a growth-focused strategy but also increases sensitivity to market fluctuations. Stocks, particularly those in the technology sector, can offer high returns but come with higher volatility compared to more conservative investments like bonds or cash equivalents.

Sectors Info

  • Technology
    33%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral allocation is heavily skewed towards technology (33%), followed by financial services (13%) and consumer cyclicals (11%). This concentration in growth-oriented sectors can lead to higher volatility, especially during market downturns or when these sectors underperform. Diversifying across a broader range of sectors could help mitigate this risk.

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%

Geographically, the portfolio is predominantly invested in North America (76%), with smaller exposures to developed Europe (10%) and emerging Asian markets (4%). This heavy reliance on North American markets, while beneficial during periods of strong US market performance, may limit potential gains from global diversification, especially in emerging markets.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    1%

The focus on mega (48%) and big (33%) cap stocks suggests a preference for established companies, likely to offer stability and consistent returns. However, the limited exposure to medium (16%), small (1%), and micro (0%) cap stocks may mean missing out on the higher growth potential these smaller companies can offer.

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 this portfolio using the Efficient Frontier could potentially increase returns for the same level of risk or decrease risk for the same level of expected returns. Currently, the portfolio's heavy tilt towards technology and US markets may not represent the most efficient risk-return trade-off. Rebalancing to include a broader mix of sectors and geographies could improve diversification and portfolio efficiency.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.42%

Dividend yields across the ETFs range from 0.50% to 2.80%, contributing to a total portfolio yield of 1.42%. While not the primary focus of this growth-oriented portfolio, dividends can provide a steady income stream and help cushion against market volatility. Reinvesting these dividends could also compound growth over time.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, which is beneficial for long-term growth as lower costs mean more of the investment's return is kept by the investor. Keeping costs low is a fundamental principle of successful investing, particularly important in a growth-focused portfolio where compound returns play a significant role.

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