A concentrated North America equity portfolio with strong historic growth and moderate balanced profile risk
Report created on Aug 23, 2024Risk profile
4/7
Diversification profile
3/5
Positions
-
VF Vanguard S&P 500 Index ETF
VFV - CA92205Y1051 62.62% -
XE iShares Core Equity Portfolio
XEQT - CA46436D1087 29.70% -
XQ iShares NASDAQ 100 (CAD Hedged)
XQQ - CA46431V1031 7.68%
This portfolio is almost entirely in broad equity ETFs, with roughly two thirds tracking a large US index and most of the rest in a core global equity fund. A small tilt goes to a concentrated growth index, which amplifies exposure to big tech names. For a “balanced” risk profile, this is actually very equity-heavy, with only a tiny cash and “other” buffer. That mix matters because high equity weight usually means bigger ups and downs. Someone wanting the same long-term growth tilt but smoother ride might dial in more true defensive assets, like high‑quality bonds or cash‑like holdings, rather than stacking more equity funds on top of each other.
Growth
Using a simple example, if 10,000 units were invested at the start, the historic Compound Annual Growth Rate (CAGR) of 16.72% would have grown that to roughly 47,000 units over ten years. CAGR is just the “average yearly speed” over the whole trip. That’s very strong and better than many common equity benchmarks over long periods. At the same time, the portfolio experienced a maximum drawdown of about –28%, meaning at one stage it was down that much from a peak. Past performance is helpful for context but never a promise; future returns can be very different, especially from already high levels.
Projection
The Monte Carlo analysis simulates many possible future paths by reshuffling historical return and volatility patterns to show a range of outcomes. With 1,000 simulations, nearly all ended positive, and the median case suggests the portfolio could grow several times over a long horizon. The 5th percentile result still being positive is encouraging, but it’s not a guarantee; simulations rely on past volatility and correlations, which can change. This tool is best seen as a rough weather forecast, not a precise map. Anyone using these projections might still plan for downside scenarios and avoid relying on the highest, most optimistic paths.
Asset classes
- US Equity 82%
- Stocks 8%
- Cash 1%
The portfolio is overwhelmingly in equities, with around 90% in equity-type assets and only a sliver in cash and other categories. This creates strong participation in market growth, which is why long-run equity investors often outpace inflation. The tradeoff is that there’s limited cushioning during market stress, so temporary losses can be sharp. Common balanced benchmarks usually include a noticeable slice of bonds or other stabilizers, so this setup is more growth‑leaning than the risk label suggests. Someone wanting a truer “balanced” feel could consider shifting a modest portion away from equities and into assets that historically move less during big market swings.
Sectors
- Technology 33%
- Financials 15%
- Consumer Discretionary 10%
- Telecommunications 10%
- Industrials 8%
- Health Care 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector exposure is nicely spread across all the major economic groups but tilted toward technology and related growth areas. Tech, communication, and consumer cyclicals together form a big chunk, which boosts return potential in innovative, fast‑growing businesses. The flip side is that these sectors can be hit harder when interest rates rise or when investors rotate toward more defensive areas. On the plus side, there’s still meaningful exposure to financials, healthcare, and defensives, which adds resilience. This sector mix broadly resembles large equity benchmarks, which is a strong indicator of diversification, but anyone wanting a smoother ride might trim some of the high‑growth concentration.
Regions
- North America 91%
- Europe Developed 5%
- Japan 2%
- Asia Developed 1%
- Asia Emerging 1%
- Australasia 1%
Geographically, the portfolio leans heavily on North America, with over 90% in that region and only small slices elsewhere. This shows strong faith in the North American market, which has indeed led performance for much of the past decade. However, it also means returns are quite tied to one economic region’s fortunes, policy decisions, and currency dynamics. Common global benchmarks usually hold a larger share outside North America, giving more balance between regions. Keeping a North America tilt makes sense for many investors, but gradually increasing exposure to other developed and emerging economies could help reduce the risk of one region underperforming for an extended stretch.
Market capitalization
- Mega-cap 45%
- Large-cap 33%
- Mid-cap 18%
- Small-cap 2%
By market capitalization, the portfolio is dominated by mega and big companies, with almost four fifths in large caps and only a small slice in mid and small firms. Large caps tend to be more stable, better researched, and less likely to blow up unexpectedly, which can help reduce idiosyncratic risk. Smaller companies, while riskier, can sometimes deliver stronger growth over long periods. This mix aligns closely with major index benchmarks and is a good sign of mainstream diversification. Someone looking for an extra growth kick might cautiously increase mid and small‑cap exposure, while those prioritizing stability might actually be happy with this current tilt.
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.
Looking at risk versus return, the portfolio seems tilted toward high expected growth for a “balanced” risk score, which can place it somewhat above the traditional Efficient Frontier for conservative mixes. The Efficient Frontier is just the set of allocations that give the best trade‑off between volatility and average return using the same building blocks. Within the current ETFs, tilting a bit toward broader, more diversified holdings and away from the most concentrated growth exposure could smooth the ride without sacrificing much expected return. Efficiency here is purely about risk‑return ratio, not taxes, ethics, or personal preferences, which still need separate consideration.
Dividends
- Vanguard S&P 500 Index ETF 0.50%
- iShares Core Equity Portfolio 0.90%
- iShares NASDAQ 100 (CAD Hedged) 0.10%
- Weighted yield (per year) 0.59%
The overall dividend yield of about 0.59% is quite low, reflecting the growth‑oriented nature of the holdings. Many of the underlying companies tend to reinvest profits rather than paying them out, which is great if the goal is capital appreciation, but less helpful if someone needs regular income. Dividends can provide a stabilizing effect in flat or choppy markets, acting like a “paycheck” from the portfolio. Here, most of the return potential is expected from price growth instead. Anyone seeking more cash flow might look to introduce higher‑yielding holdings, while growth‑focused investors could be comfortable leaving the yield relatively low and reinvested.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
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