A tech-heavy balanced portfolio with high U.S. exposure and moderate dividend yield

Report created on Apr 8, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted in U.S. equities, with 100% of assets in stocks. The Invesco NASDAQ 100 ETF and Vanguard Total Stock Market Index Fund ETF Shares make up the bulk of the portfolio, accounting for 65%. This composition aligns with a growth-focused strategy but limits diversification due to the absence of bonds or international equities. While the asset allocation supports potential high returns, it also introduces higher volatility. Consider introducing other asset classes, such as bonds or international stocks, to enhance diversification and mitigate risk, especially during market downturns.

Growth Info

The portfolio has demonstrated a strong historical performance with a Compound Annual Growth Rate (CAGR) of 11.38%. This performance is impressive, especially compared to typical market benchmarks. However, the maximum drawdown of -25.73% indicates significant volatility. It's crucial to remember that past performance doesn't guarantee future results. To manage potential downturns, consider a strategy that includes periodic rebalancing and diversification to smooth out returns over time and reduce the impact of market corrections.

Projection Info

Using Monte Carlo simulations, which apply historical data to model future outcomes, the portfolio shows a wide range of potential returns. The median projection indicates a 335.3% increase, while the 5th percentile suggests a 38.9% gain. Although the simulations predict positive returns in most scenarios, they rely on historical data, which may not reflect future market conditions. Regularly reviewing the portfolio's risk and return expectations can help align it with changing market dynamics and personal investment goals, ensuring ongoing suitability.

Asset classes Info

  • Stocks
    100%

The portfolio's 100% allocation to stocks suggests a focus on capital appreciation, but it lacks diversification across asset classes. Diversification is a key principle in reducing risk and enhancing returns, as different asset classes often perform differently under various market conditions. Introducing bonds or alternative investments could provide more stability and income, especially during equity market downturns. A balanced allocation across multiple asset classes can help mitigate risks associated with market volatility, offering a smoother investment experience.

Sectors Info

  • Technology
    29%
  • Financials
    23%
  • Consumer Discretionary
    10%
  • Telecommunications
    9%
  • Health Care
    9%
  • Consumer Staples
    7%
  • Industrials
    6%
  • Energy
    4%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

The portfolio is heavily concentrated in technology (29%) and financial services (23%), which could lead to higher volatility, especially in certain economic climates. Sector concentration might expose the portfolio to sector-specific risks, such as regulatory changes or economic shifts. Balancing exposure across more sectors could help mitigate these risks. For example, increasing allocations to defensive sectors like healthcare or consumer staples might provide more stability during economic downturns, ensuring a more resilient portfolio.

Regions Info

  • North America
    98%
  • Europe Developed
    1%

With 98% of assets allocated to North America, the portfolio is highly concentrated geographically. This strong U.S. focus may limit exposure to growth opportunities in other regions. While U.S. equities have historically performed well, diversifying geographically can reduce risk and capture growth in emerging markets. Consider gradually increasing exposure to international markets to benefit from global economic trends. This approach can help balance regional risks and potentially enhance long-term returns by tapping into diverse economic growth drivers.

Market capitalization Info

  • Large-cap
    41%
  • Mega-cap
    35%
  • Mid-cap
    19%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio is primarily invested in large-cap stocks, with 76% in big and mega-cap companies. Large-cap stocks are generally more stable and offer lower risk compared to small-cap stocks, but they may also provide lower growth potential. A small allocation to mid and small-cap stocks could enhance growth prospects, albeit with higher volatility. Balancing market capitalization exposure can help achieve a more diversified risk-return profile, capturing the potential of smaller, fast-growing companies while maintaining the stability of larger ones.

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 risk-return profile can be optimized using the Efficient Frontier, which suggests a potential expected return of 15.23% at a risk level of 19.54%. The Efficient Frontier helps identify the best possible risk-return ratio within a given set of assets. While the current allocation is effective, exploring different combinations of existing assets might enhance returns without increasing risk. Regularly reviewing and adjusting the portfolio can ensure it remains aligned with optimal risk-return expectations and personal investment goals.

Dividends Info

  • iShares U.S. Financials ETF 0.70%
  • Invesco NASDAQ 100 ETF 0.70%
  • Schwab U.S. Dividend Equity ETF 4.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.50%
  • Weighted yield (per year) 1.64%

The portfolio's total dividend yield is 1.64%, with the Schwab U.S. Dividend Equity ETF contributing significantly at 4.20%. Dividends can provide a steady income stream and help cushion against market volatility. For investors seeking income, maintaining or increasing the allocation to dividend-paying investments could be beneficial. However, focusing solely on high-yield assets might limit growth potential. Balancing growth and income investments ensures a more comprehensive approach, supporting both capital appreciation and income generation.

Ongoing product costs Info

  • iShares U.S. Financials ETF 0.40%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.13%

The portfolio's total expense ratio (TER) is 0.13%, which is impressively low. Low costs are advantageous as they enhance net returns over time. The Vanguard Total Stock Market Index Fund ETF Shares, with a TER of 0.03%, contributes significantly to cost efficiency. While costs are well-managed, it's important to regularly review them to ensure they remain competitive. Keeping expenses low without sacrificing diversification or performance is a sound strategy for maximizing long-term returns and achieving investment objectives.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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