Balanced portfolio with a focus on diversified ETFs and strong dividend potential

Report created on Aug 17, 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 characterized by an equal weighting across five ETFs, covering U.S. small-cap value, international developed momentum, U.S. dividend equity, U.S. large-cap growth, and high-income sectors. This approach suggests a strategic attempt to balance growth with income, leveraging both domestic and international equities. The equal distribution across varied ETFs indicates a methodical approach to diversification, aiming to capture different market segments and investment styles.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 17.07% and a maximum drawdown of -17.63%, the portfolio has demonstrated strong performance with relatively moderate volatility. The days contributing to 90% of returns being limited to 16.0 highlights the impact of significant market movements on portfolio gains. This performance, when compared to benchmarks, should be seen as indicative of the portfolio's ability to capitalize on market opportunities while maintaining a balanced risk profile.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of potential outcomes. The 50th percentile outcome of an 866.4% increase suggests strong median growth potential. However, it's crucial to remember that these projections are hypothetical and subject to market volatility. They serve as a tool for understanding potential risk and return, rather than guaranteed outcomes.

Asset classes Info

  • Stocks
    99%

The portfolio's nearly exclusive investment in stocks (99%) positions it for growth but also exposes it to market volatility. The lack of diversification into other asset classes like bonds or real estate may limit its ability to hedge against stock market downturns. Considering the inclusion of different asset classes could enhance the portfolio's resilience during market fluctuations.

Sectors Info

  • Technology
    22%
  • Financials
    21%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Energy
    8%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    7%
  • Basic Materials
    3%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation shows a significant tilt towards Technology and Financial Services, with over 40% of the portfolio concentrated in these areas. This concentration could drive high returns but also increases susceptibility to sector-specific risks. Diversifying into underrepresented sectors or rebalancing to reduce concentration risk could improve the portfolio's stability.

Regions Info

  • North America
    83%
  • Europe Developed
    11%
  • Australasia
    2%
  • Japan
    2%
  • Asia Developed
    1%

The geographic allocation heavily favors North America (83%), with modest exposure to developed markets in Europe, Australasia, and Japan. This regional distribution reflects a focus on established markets, potentially limiting exposure to emerging market volatility but also possibly missing out on higher growth opportunities in those regions. Considering a slight increase in emerging markets exposure might offer a balance between risk and reward.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    30%
  • Mid-cap
    13%
  • Small-cap
    11%
  • Micro-cap
    11%

The market capitalization breakdown reveals a balanced mix, with a slight preference for larger companies (Mega and Big caps constitute 64%). This allocation supports stability and potential growth but may underutilize the higher growth potential of smaller companies. Adjusting the balance towards medium, small, or micro caps could enhance growth prospects, albeit with increased 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.

The portfolio's current allocation appears to be near the Efficient Frontier, suggesting an optimal risk-return balance based on historical data. However, ongoing adjustments may be required to maintain this efficiency as market conditions change. It's important to remember that optimization is based on past performance, which is not indicative of future results. Regularly reviewing and adjusting the portfolio in response to changing market dynamics can help in sustaining its performance.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P International Developed Momentum ETF 1.90%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 11.90%
  • Weighted yield (per year) 3.92%

The portfolio's average dividend yield of 3.92% is notably enhanced by the SHP ETF Trust - NEOS S&P 500 High Income ETF, contributing to the portfolio's income generation capabilities. This focus on dividends can provide a steady income stream, which is particularly beneficial in volatile or declining markets. Monitoring dividend performance and considering the sustainability of high yields is crucial for maintaining this income strategy.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • Weighted costs total (per year) 0.26%

With an average Total Expense Ratio (TER) of 0.26%, the portfolio is efficiently managed in terms of costs. The range from 0.04% to 0.68% across the ETFs shows a balance between cost and potential value offered by each fund. Lowering costs further can be challenging without sacrificing diversification or potential returns, but it remains an important factor in maximizing net returns over time.

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