Balanced ETF Portfolio with a Strong Emphasis on US Stocks and Diverse Sector Exposure

Report created on Aug 7, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly composed of ETFs, with a heavy allocation towards the Vanguard Total Stock Market Index Fund ETF Shares, making up 55% of the portfolio. The American Century ETF Trust and Avantis® U.S. Small Cap Value ETF round out the portfolio, contributing 30% and 15%, respectively. This composition suggests a strategic focus on broad market exposure with an emphasis on diversification across market capitalizations and sectors, albeit solely within the stock asset class.

Growth Info

Historically, the portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 18.01%, with a maximum drawdown of -17.59%. This performance, characterized by significant gains punctuated by relatively moderate declines, indicates a well-balanced risk-return profile. It's important to note, however, that past performance is not indicative of future results, especially in the inherently unpredictable nature of stock markets.

Projection Info

Monte Carlo simulations, which use historical data to project a range of potential future outcomes, suggest a wide variance in potential portfolio values. With the majority of simulations predicting positive returns, this analysis supports the portfolio's current strategy but also underscores the inherent uncertainties in predicting market movements. The projected median increase of 748.6% is optimistic, yet investors should remain cautious and not expect guaranteed outcomes.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no exposure to bonds, cash, or alternative investments. This singular focus on equities enhances growth potential but also increases volatility and risk. Diversifying across different asset classes can provide a buffer against stock market fluctuations, potentially smoothing out returns over time.

Sectors Info

  • Technology
    21%
  • Financials
    19%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Health Care
    8%
  • Telecommunications
    7%
  • Energy
    6%
  • Consumer Staples
    5%
  • Basic Materials
    5%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is broad, covering technology, financial services, industrials, consumer cyclicals, and healthcare as the top five sectors. This spread mitigates sector-specific risks but also highlights a significant tilt towards sectors that can be highly sensitive to economic cycles. Balancing this with more defensive sectors could provide additional stability.

Regions Info

  • North America
    71%
  • Europe Developed
    12%
  • Japan
    5%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographic exposure is predominantly North American (71%), with modest allocations to developed Europe, Japan, and emerging Asian markets. This geographic distribution underscores a strong home bias, which may limit exposure to global growth opportunities and increase vulnerability to regional economic downturns.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    26%
  • Mid-cap
    18%
  • Small-cap
    13%
  • Micro-cap
    9%

The portfolio's market capitalization breakdown includes a mix of mega, big, medium, small, and micro-cap stocks. This diversified approach across market caps can help capture growth in smaller companies while relying on the stability of larger corporations. However, the specific allocation should be aligned with the investor's risk tolerance and investment horizon.

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 a potential for a slightly higher expected return of 18.63% at the same risk level. While the current portfolio performs well, there's always room for improvement. Regularly reviewing and adjusting asset allocation in response to changing market conditions and personal financial goals can help maintain an optimal balance between risk and return.

Dividends Info

  • American Century ETF Trust 3.00%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.82%

The portfolio's dividend yield averages 1.82%, contributing to total returns. While not the primary focus, dividends offer a passive income stream and can provide a cushion during market dips. Investors might consider the role of dividends in their overall return expectations and income needs.

Ongoing product costs Info

  • American Century ETF Trust 0.31%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.15%

The portfolio's total expense ratio (TER) of 0.15% is relatively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact compounded returns over time.

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