A balanced portfolio with a strong focus on US equities and technology exposure

Report created on Aug 21, 2025

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 predominantly invested in U.S. equities, with significant allocations to ETFs tracking the S&P 500, NASDAQ 100, and specific sector funds. The presence of a gold ETF adds a non-equity diversification element, although it's relatively minor. The heavy reliance on large-cap and technology stocks, alongside a moderate international presence, suggests a strategy aiming for growth while attempting to mitigate risk through diversification across sectors and geographies.

Growth Info

Historically, this portfolio has demonstrated strong performance, with a Compound Annual Growth Rate (CAGR) of 15.52%. This is a robust figure, indicating that the portfolio has effectively capitalized on the growth of the U.S. stock market. The Max Drawdown, a measure of the portfolio's largest drop, suggests moderate risk, consistent with its balanced profile. The days contributing to 90% of returns highlight the portfolio's sensitivity to market highs, underscoring the importance of staying invested during volatile periods.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes but with a high likelihood of positive returns. While such simulations provide valuable insights, they also carry limitations, primarily that past performance is not indicative of future results. Nonetheless, the high number of simulations predicting positive returns reinforces the portfolio's strong foundation, albeit with the usual market risks.

Asset classes Info

  • Stocks
    90%
  • Other
    10%

The allocation across asset classes shows a heavy emphasis on stocks, making up 90% of the portfolio. This concentration in equities is counterbalanced by a 10% investment in gold, a traditional hedge against inflation and market volatility. However, the absence of fixed-income assets might limit the portfolio's ability to cushion against stock market downturns, suggesting a potential area for diversification improvement.

Sectors Info

  • Technology
    27%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    8%
  • Consumer Staples
    7%
  • Health Care
    7%
  • Energy
    4%
  • Utilities
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

The sectoral distribution indicates a pronounced tilt towards technology, which could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts. While the diversification across other sectors like financial services and consumer cyclicals adds balance, the overall sectoral exposure suggests a growth-oriented strategy with a higher risk and return potential.

Regions Info

  • North America
    80%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

Geographically, the portfolio is heavily weighted towards North America, with minimal exposure to international markets. This concentration enhances the portfolio's potential for growth, given the historical performance of U.S. equities, but also increases its vulnerability to U.S.-specific economic downturns. Increasing international exposure, particularly to emerging markets, could offer broader diversification benefits.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    15%
  • No data
    10%
  • Small-cap
    1%

The focus on mega and big-cap stocks aligns with the portfolio's balanced risk profile, as these companies tend to be more stable and less volatile than smaller caps. However, the limited exposure to small and micro-cap stocks means potentially missing out on higher growth opportunities offered by these segments, albeit with increased risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between certain ETFs, particularly those tracking large-cap growth stocks and the NASDAQ 100, indicates overlapping investments that may not provide the intended diversification benefits. Reducing such overlap could enhance the portfolio's efficiency by lowering risk without sacrificing expected returns.

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.

Optimization analysis suggests that the portfolio could achieve a slightly higher expected return with the same level of risk by adjusting asset allocations, particularly by addressing the overlap in highly correlated assets. This refinement would not only enhance returns but also improve diversification, aligning more closely with the Efficient Frontier—a concept describing the optimal portfolio with the best possible risk-return ratio.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.18%

The portfolio's dividend yield contributes to its total return, adding a layer of income on top of capital gains. While the overall yield is moderate, it reflects the growth-focused nature of the portfolio. Investors seeking higher income might consider increasing allocations to higher-yielding assets, though this could alter the portfolio's risk-return profile.

Ongoing product costs Info

  • SPDR® Gold Shares 0.40%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) is relatively low, which is beneficial for long-term growth as lower costs translate directly into higher returns. This cost efficiency is a positive aspect, particularly in a growth-oriented portfolio where even small percentage savings can significantly impact compounded returns over time.

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