A balanced ESG-focused portfolio with diversified global exposure and sustainable investment themes

Report created on Aug 21, 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 showcases a strong commitment to environmental, social, and governance (ESG) principles across a variety of asset classes, with a substantial allocation to both domestic and international stocks. The emphasis on ESG ETFs, including specific sectors like clean energy, aligns with a growing trend of sustainable investing. The balanced mix of large-cap, mid-cap, and small-cap stocks, alongside geographic diversification, positions this portfolio well to capture growth across different market segments and regions. However, the heavy reliance on stock ETFs increases exposure to market volatility, which is somewhat mitigated by the broad diversification.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.59% and a maximum drawdown of -26.35%, the portfolio has demonstrated resilience and strong performance relative to its risk profile. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio gains. While past performance is an encouraging indicator, it's important to remember it does not guarantee future results. The portfolio's balanced risk classification and diversified approach have likely contributed to its ability to navigate market fluctuations effectively.

Projection Info

The Monte Carlo simulation, using 1,000 iterations, projects a wide range of potential outcomes, with a median increase of 281.6% in portfolio value. This forward-looking tool helps in understanding the variability of returns, emphasizing that while the portfolio has a solid foundation, outcomes can significantly differ. The high number of simulations with positive returns reinforces the portfolio's resilience, though investors should remain aware of the inherent uncertainties in market predictions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is heavily skewed towards stocks (99%), with a minimal cash reserve (1%). This composition underscores a growth-oriented strategy but also signals a higher risk level due to the lack of asset class diversification. Incorporating bonds or other fixed-income securities could provide a cushion against stock market volatility, offering more stable returns and reducing overall portfolio risk.

Sectors Info

  • Technology
    23%
  • Financials
    18%
  • Industrials
    14%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Utilities
    7%
  • Telecommunications
    5%
  • Consumer Staples
    5%
  • Real Estate
    4%
  • Basic Materials
    4%
  • Energy
    1%

Sector allocation reveals a concentration in technology, financial services, and industrials, which are sectors with high growth potential but also increased susceptibility to market cycles. The underweight position in energy, and substantial investments in clean energy and ESG-screened ETFs, reflect a strategic bet on sustainability trends. Diversifying into underrepresented sectors could reduce risk and capture growth in other areas of the economy.

Regions Info

  • North America
    64%
  • Europe Developed
    14%
  • Asia Emerging
    7%
  • Japan
    5%
  • Asia Developed
    4%
  • Latin America
    2%
  • Australasia
    2%
  • Africa/Middle East
    1%

Geographic distribution shows a strong bias towards North America and developed markets in Europe and Asia, with limited exposure to emerging markets. This allocation benefits from the stability of developed economies but may miss out on the higher growth potential offered by emerging markets. Increasing exposure to these regions could enhance returns, albeit with added risk.

Market capitalization Info

  • Mega-cap
    28%
  • Large-cap
    23%
  • Small-cap
    22%
  • Mid-cap
    18%
  • Micro-cap
    7%

The portfolio's market capitalization breakdown indicates a balanced approach, with allocations across mega, big, small, medium, and micro-caps. This diversity helps in spreading risk and capturing growth across different company sizes. However, the significant investments in smaller cap stocks increase the portfolio's volatility, given their higher risk-return profile compared to larger companies.

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.

The analysis suggests that an optimized portfolio with the same risk level could potentially yield a higher expected return of 16.50%. This indicates room for improvement in the current asset allocation to achieve a more efficient risk-return balance. Rebalancing the portfolio to include assets or sectors with higher expected returns or lower correlation can enhance performance while maintaining the desired risk profile.

Dividends Info

  • iShares Global Clean Energy ETF 1.80%
  • SPDR® S&P 500 Fossil Fuel Reserves Free ETF 1.00%
  • Vanguard ESG International Stock 2.80%
  • iShares ESG Screened S&P Mid-Cap ETF 1.00%
  • iShares ESG Screened S&P Small-Cap ETF 1.60%
  • Weighted yield (per year) 1.70%

The portfolio's dividend yield stands at 1.70%, which is a reasonable return in the context of ESG and growth-oriented investments. Dividends contribute to total returns and provide a source of income, which can be particularly valuable during market downturns. Continuously monitoring and potentially increasing exposure to higher-yielding assets could improve income without drastically altering the portfolio's risk profile.

Ongoing product costs Info

  • iShares Global Clean Energy ETF 0.41%
  • SPDR® S&P 500 Fossil Fuel Reserves Free ETF 0.20%
  • Vanguard ESG International Stock 0.12%
  • iShares ESG Screened S&P Mid-Cap ETF 0.12%
  • iShares ESG Screened S&P Small-Cap ETF 0.12%
  • Weighted costs total (per year) 0.17%

With a total expense ratio (TER) of 0.17%, the portfolio benefits from relatively low costs, which is commendable given the specialized nature of ESG investments. Lower costs directly translate to higher net returns over time. Maintaining a focus on cost efficiency, especially when considering new investments, remains crucial for optimizing long-term performance.

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