A balanced and broadly diversified portfolio with strong emphasis on US equities and technology

Report created on Aug 1, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is predominantly invested in equities through ETFs, with a significant 60% allocation to a Vanguard S&P 500 ETF, reflecting a strong bias towards large-cap US stocks. The inclusion of a 20% allocation to the Vanguard Total International Stock Index Fund ETF broadens its geographical scope, albeit with a still considerable tilt towards the US market. The Avantis® U.S. Small Cap Value ETF and Invesco NASDAQ 100 ETF, each constituting 10% of the portfolio, introduce elements of small-cap value and technology-focused growth, respectively. This composition suggests a balanced approach, aiming to capture both value and growth opportunities across a wide market spectrum.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 14.65%, with a maximum drawdown of -24.93%. This performance is indicative of a robust growth trajectory, albeit with periods of significant volatility. The days contributing to 90% of returns being concentrated in just 20.0 days highlights the impact of short-term market movements on overall performance. Comparing this to benchmark indices could provide further insight into relative performance, especially during market downturns.

Projection Info

Monte Carlo simulations, employing 1,000 iterations, suggest a wide range of potential outcomes for the portfolio. The 50th percentile outcome at 577.1% growth is particularly noteworthy, alongside a high count of simulations (992) yielding positive returns. This forward projection, while optimistic, is based on historical data and should be interpreted with caution. It underscores the portfolio's potential for significant growth but also highlights the inherent uncertainties in market-based investments.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset class allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This high equity exposure is aligned with the portfolio's balanced risk profile but leans towards higher volatility and growth potential. The lack of diversification into other asset classes, such as bonds or real estate, might limit the portfolio's ability to mitigate risk during stock market downturns.

Sectors Info

  • Technology
    28%
  • Financials
    16%
  • Consumer Discretionary
    12%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is varied, with a notable emphasis on technology (28%), which aligns with the portfolio's growth orientation. Financial Services (16%) and Consumer Cyclicals (12%) further diversify the portfolio, while smaller allocations to sectors like Utilities and Real Estate offer some defensive positioning. This sector distribution reflects a balanced approach, capturing both cyclical and non-cyclical elements, though the heavy tech weighting introduces sector-specific risks.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution shows a strong North American focus (81%), complemented by diversified international exposure, including developed Europe and emerging Asian markets. This geographical spread enhances the portfolio's global reach but retains a significant home bias, which could affect performance during periods of US market underperformance or international market outperformance.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    6%
  • Micro-cap
    5%

The allocation across market capitalizations shows a preference for Mega (42%) and Big (30%) cap stocks, indicative of a tilt towards more established, potentially less volatile companies. Medium, Small, and Micro caps collectively make up a smaller portion of the portfolio, offering growth opportunities and diversification benefits but also introducing additional volatility and 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 appears to be positioned for an optimal risk-return ratio based on its current assets and allocation. Adjustments could further enhance this efficiency, but it's important to note that such optimizations are based on historical data, which may not accurately predict future performance. Continuous reassessment of the allocation in response to changing market conditions can help maintain this balance.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • 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) 1.50%

Dividend yields across the ETFs contribute to the portfolio's total yield of 1.50%, with the Vanguard Total International Stock Index Fund ETF Shares offering the highest yield at 2.80%. This income component adds to the portfolio's total return, providing a cushion during market volatility and contributing to compounding growth over time.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • 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) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, enhancing its long-term return potential by minimizing cost drag. The varying costs of individual ETFs, from 0.03% for the Vanguard S&P 500 ETF to 0.25% for the Avantis® U.S. Small Cap Value ETF, are well justified by their respective roles in the portfolio's strategy.

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