A broadly diversified balanced equity heavy portfolio with momentum and dividend tilts

Report created on Dec 11, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

The portfolio is equity centric with six ETFs and weightings led by a total US market ETF at 40% and total international equity at 20% plus momentum and dividend ETFs filling the remainder. Compared with a typical 60/40 benchmark this is far more equity tilted and uses both broad market and factor‑tilt instruments. This mix matters because it defines return drivers risk exposure and overlap between funds. Recommendation: explicitly map overlap between broad index ETFs and factor ETFs then set target weights and rebalancing thresholds so allocation and factor tilts remain intentional rather than accidental.

Growth Info

Historical numbers show a strong compound annual growth rate (CAGR) of 12.05% and a max drawdown of −24.07%. CAGR, or Compound Annual Growth Rate, measures average yearly growth like an average speed over a long trip; max drawdown shows the largest peak‑to‑trough loss. For context a hypothetical $10,000 growing at 12.05% per year would roughly triple in ten years. Past performance is informative but not predictive; market regimes change. Recommendation: use these metrics as a sanity check for expected volatility and consider stress testing the portfolio against adverse scenarios before assuming similar future returns.

Projection Info

A Monte Carlo simulation was used to project outcomes by running many randomized paths based on historical returns and volatility to estimate a range of possible end values; this method shows uncertainty rather than certainty. The reported percentiles (5th 65.2% 50th 325.1% 67th 475.5%) indicate a wide dispersion: low‑probability deep losses and high upside outcomes. Simulations assume return distributions and correlations similar to history which may not hold in future especially in regime shifts. Recommendation: use these projections to set realistic goals and tail‑risk plans rather than as guarantees of future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Asset class exposure is overwhelmingly equities at 99% with 1% cash and negligible other assets. Compared to balanced portfolio norms that typically include meaningful fixed income this composition increases expected return potential but also raises drawdown risk. Diversification across asset classes reduces portfolio volatility because different assets react differently to the same shock. Recommendation: consider adding a meaningful allocation to high quality fixed income or inflation‑hedging instruments to smooth returns and provide dry powder for rebalancing during equity drawdowns while aligning allocation with the stated risk profile.

Sectors Info

  • Technology
    23%
  • Financials
    20%
  • Industrials
    12%
  • Telecommunications
    9%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector weights show notable concentration with Technology at 23% and Financial Services at 20% while other sectors are represented more moderately. Sector concentration matters because sector‑specific shocks (policy rates regulation or technological disruption) can dominate performance. A tech and financial tilt can boost returns in favorable cycles but increases cyclical and rate sensitivity. Recommendation: define acceptable sector bands and either trim or add exposures to keep sectors within those bands so that sector moves don’t unintentionally overwhelm overall allocation objectives.

Regions Info

  • North America
    69%
  • Europe Developed
    16%
  • Japan
    4%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is heavily tilted to North America at 69% with Europe developed at 16% and smaller allocations elsewhere. Compared to broad global market benchmarks this is an overweight to the U.S. and underweight to emerging markets and some developed regions. Geographic concentration can introduce home‑country bias and correlated political/regulatory risk. Recommendation: review international and emerging market allocations relative to long‑term strategic targets and consider gradual adjustments to improve geographic diversification if the goal is global beta rather than home market concentration.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    36%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    1%

Market‑cap breakdown shows 40% mega 36% big 17% medium 4% small and 1% micro caps. Heavy mega and large cap exposure typically brings lower volatility and higher liquidity but can reduce exposure to small cap growth premiums and diversification benefits from smaller firms. Market cap mix impacts return drivers and factor exposures. Recommendation: if improving return diversification is a goal consider a modest increase in mid and small cap exposure or specific small‑cap tilts to capture different growth cycles while monitoring liquidity and trading costs.

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.

Efficient Frontier optimization identifies portfolios offering the highest expected return for a given level of risk based solely on the current set of assets and historical return and covariance inputs. Efficiency here means the best risk‑return ratio not necessarily the most diversified portfolio. Running an optimizer on these exact ETFs can show whether small reallocations could improve the Sharpe‑type tradeoff but will rely on historical estimates and ignore transaction taxes and practical constraints. Recommendation: if pursuing optimization treat outputs as guidance set realistic turnover limits and incorporate liability or goal constraints before implementing changes.

Dividends Info

  • Invesco S&P International Developed Momentum ETF 1.70%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab International Dividend Equity ETF 3.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.78%

The portfolio blended yield is about 1.78% with dividend ETFs offering higher yields (around 3.5–3.7%) while momentum exposures yield less. Dividends contribute to total return and can provide income and stability especially in sideways markets; they also tend to be less volatile than price returns. Reinvestment of dividends compounds returns over time. Recommendation: decide whether income objectives exist; if so consider increasing dividend oriented holdings or adding income producing fixed income to reach a target income rate while balancing growth goals and tax considerations.

Ongoing product costs Info

  • Invesco S&P International Developed Momentum ETF 0.25%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Dividend Equity ETF 0.14%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

The overall total expense ratio (TER) is low at about 0.08% reflecting efficient use of low‑cost broad market ETFs though a few factor ETFs are higher at 0.13–0.25%. TER measures how much a fund charges annually and is like a recurring performance drag. Low costs compound into materially better long‑term outcomes. Recommendation: keep the low‑cost core where possible but assess whether higher cost factor ETFs deliver sufficient incremental value versus cheaper alternatives and factor turnover and tax efficiency before making swaps.

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