A balanced approach to cautious investing with a strong focus on US equities and technology

Report created on Jul 21, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio showcases a significant allocation to the Fidelity® Government Money Market Fund, making up nearly 40% of the portfolio, indicative of a cautious investment strategy. The remaining majority is invested in a mix of ETFs that cover the total stock market and specific sectors, with a notable emphasis on technology through the Invesco QQQ Trust. A singular stock position in Cisco Systems Inc adds a direct equity investment to the mix. This composition suggests a blend of seeking growth through equities while maintaining a substantial safety net in money market funds.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.93%, with a maximum drawdown of -23.80%. These figures suggest a resilient performance, especially considering the cautious risk profile. The days contributing to 90% of returns being limited to 34 indicates that the portfolio's positive performance is reliant on relatively few, but significant, positive market movements. This could imply that timing and market conditions play crucial roles in achieving such returns.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The median projection suggests a potential 393.5% increase, with a high degree of certainty for positive returns (991 out of 1,000 simulations). However, it's important to remember that these simulations are based on past data, and future market conditions can vary significantly.

Asset classes Info

  • Stocks
    61%
  • No data
    39%

The portfolio's asset class distribution, with 61% in stocks and 39% in what's classified as 'Unknown' (largely the money market fund), indicates a moderate approach to risk. This allocation supports the portfolio's cautious profile while still allowing for growth through equity investments. The absence of direct cash allocations is noted, with liquidity instead maintained through the money market fund.

Sectors Info

  • No data
    39%
  • Technology
    25%
  • Consumer Discretionary
    6%
  • Telecommunications
    6%
  • Financials
    6%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Its sector allocation reveals a strong preference for technology, constituting a quarter of the portfolio. Other sectors like consumer cyclicals, communication services, and financial services are also represented but to a lesser extent. This sectoral distribution suggests a belief in the long-term growth potential of tech industries, despite their known volatility.

Regions Info

  • North America
    60%
  • No data
    39%

Geographically, the portfolio is heavily weighted towards North America (60%), with a significant portion marked as 'Unknown' due to the money market fund. This concentration reflects a common home bias, potentially limiting exposure to international growth opportunities and diversification benefits.

Market capitalization Info

  • No data
    39%
  • Mega-cap
    30%
  • Large-cap
    19%
  • Mid-cap
    10%
  • Small-cap
    1%

The market capitalization breakdown shows a preference for mega and large-cap stocks, which are typically considered less volatile than their smaller counterparts. This aligns with the portfolio's cautious risk profile, as these companies are often more established and financially resilient.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    SPDR S&P 500 ETF Trust
    Vanguard S&P 500 ETF
    High correlation

The high correlation observed among the Vanguard Total Stock Market Index Fund ETF Shares, SPDR S&P 500 ETF Trust, and Vanguard S&P 500 ETF indicates redundancy. This overlap suggests that diversification benefits within the equity portion of the portfolio could be improved by reallocating some of these investments.

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.

Considering the Efficient Frontier, the portfolio could benefit from reducing overlaps in highly correlated assets. This optimization would aim to maintain or improve the risk-return ratio by reallocating investments from redundant positions to those offering similar returns with less correlation, enhancing overall portfolio efficiency.

Dividends Info

  • Cisco Systems Inc 1.80%
  • Invesco QQQ Trust 0.40%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Fidelity® Government Money Market Fund 4.00%
  • SPDR S&P 500 ETF Trust 0.90%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 2.25%

The portfolio's dividend yield stands at an average of 2.25%, contributed by both the equity positions and the money market fund. This yield provides a steady income stream, which is beneficial for a cautious investor seeking regular returns alongside capital appreciation.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.05%

With an average Total Expense Ratio (TER) of 0.05%, the portfolio is efficiently managed in terms of costs. Lower costs can significantly enhance long-term returns by minimizing the drag on performance, a critical consideration for a cautious investment strategy.

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