A growth tilted balanced portfolio with strong US focus and notable technology concentration

Report created on Aug 21, 2024

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 built almost entirely from broad equity ETFs, with a big 60% anchor in a large US index, a 26% position in a global core equity fund, and a 14% tilt toward global technology. Overall, that creates a clearly equity-heavy mix with only a small cash footprint and no dedicated bonds inside the listed holdings. For a “balanced” risk profile, this leans growthy rather than conservative. That equity tilt matters because it drives both higher long‑term return potential and bigger swings in bad markets. To soften future drawdowns while still aiming for growth, shifting a modest slice toward more defensive assets or lower‑volatility equity could help smooth the ride.

Growth Info

From the historical data, a 17.41% compound annual growth rate (CAGR) stands out as very strong. CAGR is like your average yearly speed on a long road trip, ignoring bumps along the way. A -27.15% max drawdown shows the worst peak‑to‑trough fall, which is meaningful but not extreme for an equity‑heavy mix. Compared with typical balanced benchmarks that often sit in the mid‑single to low‑double digit range, this history is quite impressive. Still, markets move in cycles and recent tech strength heavily influences these numbers. Past performance can’t promise similar results ahead, so it’s wise to mentally prepare for stretches of lower or even negative returns.

Projection Info

The Monte Carlo results use 1,000 simulations to estimate future outcomes by “replaying” many versions of market history. Think of it as running 1,000 alternate futures based on how similar portfolios behaved in the past. The median (50th percentile) outcome of about 988% growth and a 20.3% simulated annual return is very ambitious, while the 5th percentile at roughly 209% still shows solid growth. Every run showed a positive return, which reflects the strong historical inputs and equity tilt. Still, these are models built on past patterns; they don’t fully capture regime shifts, policy shocks, or long flat periods. Treat the projections as a rough map, not a guarantee, and plan as if actual results could fall well below the median path.

Asset classes Info

  • US Equity
    83%
  • Stocks
    7%

Looking at asset classes, roughly 90% of the portfolio falls into equities when combining US and global allocations, with a tiny slice in cash and no explicit bond exposure. This is more aggressive than many “balanced” mixes, which typically include a sizable portion of fixed income. Heavy equity exposure is great for long‑term compounding but can be emotionally tough in deep downturns, when stocks can fall together. The current mix is well aligned with a growth‑oriented mindset and can be effective for long horizons. For investors wanting smoother returns or nearer‑term goals, gradually layering in a bit more defensive exposure or income‑oriented assets could make the experience more manageable without abandoning growth.

Sectors Info

  • Technology
    36%
  • Financials
    14%
  • Telecommunications
    10%
  • Consumer Discretionary
    10%
  • Industrials
    7%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is a key story here: technology sits at around 36%, with meaningful but smaller stakes in financials, communications, consumer cyclicals, and industrials. This tech‑heavy tilt has been a major driver of the strong historical performance and aligns with recent market leadership, which is encouraging. The flip side is that tech tends to be more sensitive to changes in interest rates, regulation, and innovation cycles, so swings can be larger when sentiment turns. Compared with many broad benchmarks, this portfolio is clearly overweight growth‑oriented sectors. To keep the upside but avoid over‑reliance on one theme, trimming the dedicated tech slice or nudging up more defensive areas could create a smoother sector balance over time.

Regions Info

  • North America
    91%
  • Europe Developed
    5%
  • Japan
    2%
  • Asia Developed
    1%
  • Asia Emerging
    1%

Geographically, the portfolio is dominated by North America at about 91%, with modest allocations to Europe, Japan, and other developed and emerging regions. This US‑centric stance has historically helped, as North American markets—especially large US companies—have outperformed many other regions over the past decade. However, it also means results are tightly tied to one economic and policy environment. If non‑US markets outperform in a future cycle, this tilt could lag a more globally balanced benchmark. The exposure is still reasonably diversified, just not evenly spread. Gradually raising the share of international equities, especially beyond the largest markets, could improve geographic diversification without drastically changing the overall risk profile.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    32%
  • Mid-cap
    17%
  • Small-cap
    2%

By market capitalization, the mix leans strongly into mega and big companies, with 80% in large caps, 17% in mid caps, and just 2% in small caps. Large caps tend to be more stable and transparent, which supports steadier behavior and aligns with many global benchmarks. This is a positive alignment, especially for a balanced risk profile, because mega‑cap names usually have stronger balance sheets and more diversified businesses. The relatively small exposure to smaller companies limits both the extra growth potential and the extra volatility they can bring. For investors looking for a bit more long‑term upside and who can tolerate choppier performance, slightly expanding mid or small‑cap exposure could add another return driver.

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.

On a risk‑return basis, this portfolio sits in a growth‑tilted zone that appears above average in historical reward for the level of volatility taken. The concept of the Efficient Frontier is about finding the best possible trade‑off between risk and return using the existing menu of assets, not about maximizing diversification alone. Within your current ETFs, it’s quite possible that slightly adjusting the weights—such as dialing back concentrated themes or modestly reducing overall equity exposure—could move the mix closer to that efficient line. Any change would be about fine‑tuning, not an overhaul, since the core structure already matches many principles of modern portfolio theory while leaning purposely toward growth.

Dividends Info

  • TD Global Technology Leaders Index ETF 0.10%
  • Vanguard S&P 500 Index ETF 0.50%
  • iShares Core Equity Portfolio 0.90%
  • Weighted yield (per year) 0.55%

Income isn’t the main story here. With an overall dividend yield around 0.55%, this portfolio is clearly focused on price growth rather than cash payouts. Dividends are the regular payments some companies make to shareholders, which can be meaningful for those needing income or wanting a smoother return profile. A low yield fits a growth‑oriented approach and aligns with heavy tech exposure, since many technology leaders reinvest profits instead of paying large dividends. That’s not inherently good or bad; it just defines where returns are expected to come from. For someone who eventually wants more cash flow—for example, in retirement—gradually adding higher‑yielding assets later on could complement this growth engine nicely.

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